This and all the following problems use the following income statement and balan
ID: 2735192 • Letter: T
Question
This and all the following problems use the following income statement and balance sheet for Ezra Inc so you need to copy-paste it in Excel only once. Note, the marketable securities are an investing item and other non-current liabilities are a financing item that carry an interest charge.
Ezra Inc. Balance Sheet as of December 31st
2015
2014
ASSETS
Cash
$12,802
$9,821
Marketable securities
8,730
8,201
Accounts and notes receivable—Trade
40,831
39,160
Inventories
15,641
17,313
Deferred income taxes
2,547
1,772
Prepayments
1757
1274
Total Current Assets
$82,308
$77,541
Property, plant, and equipment, at cost
143,302
142,344
Less accumulated depreciation
(79,601)
(72,651)
Deferred income taxes
1,844
1,975
Intangible assets (patents)
8,455
6,775
Total Assets
$156,308
$155,984
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts and notes payable—Trade
$19,716
$21,655
Notes payable to banks
20,688
19,802
Current portion of long-term debt
300
300
Other current liabilities
13,370
17,344
Total Current Liabilities
$54,074
$59,101
Long-term debt
17,743
16,887
Deferred income taxes
3,361
0
Other noncurrent liabilities (financing, interest bearing)
349
416
Total Liabilities
$75,527
$76,404
Common stock
$21,516
$21,516
Additional paid-in capital
30,024
30,024
Retained earnings
30,909
28,711
Accumulated other comprehensive income
(659)
(659)
Treasury stock
(1,009)
(12)
Total Shareholders’ Equity
$80,781
$79,580
Total Liabilities and Shareholders’ Equity
$156,308
$155,984
Income Statement
2015
2014
Sales
$832,780
$861,520
Cost of goods sold
(545,170)
(560,160)
Selling and administrative expenses
(280,017)
(292,381)
Interest expense
(4,212)
(7,320)
Income tax expense
(1,183)
(581)
Net Income
$2,198
$1,078
Dividends paid
0
0
Marginal and Effective Tax rate
35%
35%
What was Ezra's net cash flow from operations for the year 2015?
$8,022
$5,470
($1,480)
$2,918
Ezra Inc. Balance Sheet as of December 31st
2015
2014
ASSETS
Cash
$12,802
$9,821
Marketable securities
8,730
8,201
Accounts and notes receivable—Trade
40,831
39,160
Inventories
15,641
17,313
Deferred income taxes
2,547
1,772
Prepayments
1757
1274
Total Current Assets
$82,308
$77,541
Property, plant, and equipment, at cost
143,302
142,344
Less accumulated depreciation
(79,601)
(72,651)
Deferred income taxes
1,844
1,975
Intangible assets (patents)
8,455
6,775
Total Assets
$156,308
$155,984
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts and notes payable—Trade
$19,716
$21,655
Notes payable to banks
20,688
19,802
Current portion of long-term debt
300
300
Other current liabilities
13,370
17,344
Total Current Liabilities
$54,074
$59,101
Long-term debt
17,743
16,887
Deferred income taxes
3,361
0
Other noncurrent liabilities (financing, interest bearing)
349
416
Total Liabilities
$75,527
$76,404
Common stock
$21,516
$21,516
Additional paid-in capital
30,024
30,024
Retained earnings
30,909
28,711
Accumulated other comprehensive income
(659)
(659)
Treasury stock
(1,009)
(12)
Total Shareholders’ Equity
$80,781
$79,580
Total Liabilities and Shareholders’ Equity
$156,308
$155,984
Explanation / Answer
Cash flow from operations Net Income 2198 Add Depriciation ( 79601-72651) 6950 Decrease in inventories 1672 increase in deferred income taxes 1831 increase in notes payable - bank 886 11339 Less Increase in accounts receivable 1671 increase in deferred income taxes 0 increase in oprepayments 483 decrease in accounts payable 1939 decrease in other current liabilities 3974 8067 5470