Integrated Financial Statement Exercise

Balance Sheet Income Statement 1/1/13-12/31/13 Cash Flow Statement 1/1/13-12/31/1312/31/12 12/31/13

ASSETS Net Revenues 1,340.30 Net Income 422.70 Cash and equivalents 34.60 Cost of Goods Sold (COGS) 432.40 Depreciation and amortizationAccounts Receivable 74.80 82.40 Selling, general, & Administrative 123.40 Changes in working capitalInventories 132.60 145.70 Research and development 56.30 Accounts ReceivableTotal Current Assets 242.00 20.00 Inventories

Other operating expenses 12.30 Accounts payablePP&E 212.70 259.30 Net Interest expense 45.60 Deferred taxesGoodwill & Intangibles 34.20 42.50 Pretax income 650.30 Cash from operationsDeferred Taxes 12.60 34.60 Income tax expense (35%) 227.61 Other Long Term Assets 123.90 145.30 Net income 422.70 Capital expendituresTotal Assets 625.40 709.80 31.40 Increases in all other long-term assets

Cash from investingLIABILITIESAccounts payable 120.50 130.50 Increase in bank loanNotes payable 23.50 34.20 Increase in long term debtCurrent portion of LTD 49.60 68.40 Increase in preferred stockCurrent Liabilities 193.60 233.10 Increase in common stock

Increase in APICLong-term debt 214.00 214.00 Increase in Treasury stockDeferred taxes 43.50 52.30 DividendsTotal Liabilities 451.10 499.40 Cash from financing

Shareholder's equity Beginning cash balance (12/2012)Preferred Stock 12.40 13.50 Total change in cashCommon Stock par value 5.60 7.40 Ending cash balance (12/2013)Additional paid-in-capital 146.40 163.50 Treasury Stock (112.30) (123.20)Retained Earnings 122.20 513.50 Total liabilities and SE 625.40 1,074.10

PP&E (BOP) 212.70 Less: Depreciation (15.00)Plus: Capx ?PPE (EOP) 259.30

Intangibles and GW (BOP) 34.20 Amortization 5.00 New purchases ?Intangibles and GW (EOP) 42.50

Depreciation & Amortization1

Dividends2

1 Amortization expense equals $5m2 Assume all dividends were cash dividends