Fundamentals of Corporate

Income Statement for Years Ending December 31, 2007 and 2008

1A)
2007 & 2008 2007 & 2008
2007 2008 Tax Rate Payout Ratio
34% 52%
Sales $ 2,870.00 $ 3,080.00
Less: COGS $ 987.00 $ 1,121.00
Gross Profits $ 1,883.00 $ 1,959.00

Less: Depreciation $ 413.00 $ 413.00

Other Expenses $ 238.00 $ 196.00
Total Operating Exp. $ 651.00 $ 609.00

Operating Income $ 1,232.00 $ 1,350.00

Less: Interest $ 192.00 $ 221.00
EBT $ 1,040.00 $ 1,129.00

Less: Taxes $ 353.60 $ 383.86

Earning After Taxes $ 686.40 $ 745.14

Less: Dividends Paid $ 356.93 $ 387.47

Retained Earnings: $ 329.47 $ 687.14

Note: 2007 retained earning carried over to 2008

 Fundamentals of Corporate
Balance Sheet for Years Ending December 31, 2007 and 2008
1B)
2007 2008
Cash $ 1,505.00 $ 1,539.00
Accounts Receivables $ 1,992.00 $ 2,244.00
Inventory $ 3,542.00 $ 3,640.00
Current Assets $ 7,039.00 $ 7,423.00

Net Fixed Assets $ 12,621.00 $ 12,922.00

Total Assest $ 19,660.00 $ 20,345.00

Liabities & Shareholders Equity

Accounts Payable $ 1,581.00 $ 1,533.00
Short-term note $ 291.00 $ 273.00
Current Liabilities $ 1,872.00 $ 1,806.00
Long-term debt $ 5,040.00 $ 5,880.00
Total Liabilities $ 6,912.00 $ 7,686.00

Shareholders Equity $ 12,748.00 $ 12,659.00

Total Liabilities &

Shareholder Equity $ 19,660.00
### $ 20,345.00
1C)

Fundamentals of Corporate
Cash Flow Statement ending for December 31, 2008
2008
Operating Activites
Net Income $ 745.14
Plue Depreciation $ 413.00
Gross Cash Flow $ 1,158.14

A/R Increase $ (252.00) 2007 A/R minus 2008 A/R

A/P Decrease $ (48.00) 2007 A/P minus 2008 A/P
Inventory Decrease $ (98.00) 2007 Inv minus 2008 Inv
$ (398.00)

Operating Activities Net Cash $ 760.14

Investment Activity
Fixed Assets Increase $ 714.00
Net Cash Flow $ 714.00

Financial Activities
Shareholder Equity Change $ (504.67)
Note Payable Change $ (18.00)
Change in Dividends Payment $ (329.47) (earning after tax - div. pd) - (retained earning)
Change in Long-term debt $ 840.00
Net CFFA $ (12.14)

1D) The Cash Flow fron Financial Activities (CFFA) is -$12.14 for 2008
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