Applied Managerial Finance essay paper

Apex Printing Balance Sheets As of December 31, 2013 and 2012

000$ 000$

Assets 2013 2012 Cash 6,000 5,700 Accounts Receivable 2,350 2,300 Inventory 12,100 6,500 Total Current Assets 20,450 14,500

Land 25,000 20,000 Building & Equipment 300,000 300,000 Less: Accumulated Depreciation – Building & Equipment (187,850) (160,000) Total Long Term Assets 137,150 160,000 Total Assets 157,600 174,500Applied Managerial Finance

Liabilities and Stockholders’ Equity

Accounts Payable 4,600 3,500 Salaries Payable 0 2,100 Interest Payable 1,500 0 Short Term Notes Payable 12,000 0 Taxes Payable 0 5,600 Total Current Liabilities 18,100 11,200

Mortgate Payable 54,950 100,000 Total Long Term Liabilities 54,950 100,000Applied Managerial Finance

Common Stock 60,000 60,000 Retained Earnings 24,550 3,300 Total Stockholders’ Equity 84,550 63,300 Total Liabilities and Stockholders’ Equity 157,600 174,500

Apex Printing Income Statements

For the Periods Ended December 31, 2013 and 2012 000$ 000$

2013 2012

Revenue: 450,000 475,000

Less: Cost of Goods Sold (324,300) (374,500)

Less: Depreciation Expense (27,850) (26,000)

Gross Margin 97,850 74,500

Selling, General & Administrative Expenses (29,100) (32,000)

Income Before Interest & Taxes 68,750 42,500

Interest Expense (Applied Managerial Finance 7,500) (6,000)

Income Before Taxes 61,250 36,500

Income Taxes (35,000) (30,000)

Net Income 26,250 6,500

Apex Printing

Statement of Cash Flows

For the Period Ended Applied Managerial Finance December 31, 2013

000$

Cash Flows from Operating Activities: Net Income 26,250

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation Expense 27,850 Increase in accounts receivable (50) Increase in inventory (5,600) Decrease in salaries payable (2,100) Increase in interest payable 1,500 Decrease in taxes payable (5,600) Increase in Short Term notes Payable 12,000 Increase in accounts payable 1,100 Net Cash Flow from Operating Activities

55,350

Cash Flows from Investing Activities: Cash paid to purchase land (5,000)

Net Cash Flow from Investing Activities

(5,000)

Cash Flows From Financing Activities:

Cash paid for mortgage (45,050) Cash paid for dividends (5,000) Net Cash Flow from Financing ActivitiesApplied Managerial Finance

(50,050)

Net Increase in Cash

300

Plus: Cash Balance at December 31, 2012

5,700

Cash Balance at December 31, 2013

6,000