SSFinancialStatements
- 1. Sapid Sweets Trial Balance In thousands of dollars December 31, 2004 Account Debit Credit Cash $9,487 Accounts Receivable $59,725 Inventory $55,976 Patent $1,250 Equipment $65,898 Buildings, Plants and Warehouses $137,900 Deferred Taxes $3,098 Prepaid Expenses $10,029 Marketable Securities $150,000 Short-Term Debt $12,109 Long-Term Debt $136,501 Accrued Taxes $2,987 Accounts Payable $20,867 Shareholders' Equity $50,000 Retained Earnings - Previous Year $161,922 Interest Expense $7,256 Sales $525,690 Rent $15,000 Salaries and Wages $15,600 Advertising and Promotions $132,987 Research and Development $6,872 Transportation and Shipping $37,900 Administrative Expenses $1,000 Cost of Goods Sold $200,098 Total $910,076 $910,076
- 2. Sapid Sweets Income Statement In thousands of dollars Year ending December 31, 2004 Sales $525,690 Cost of Goods Sold $200,098 Gross Margin $325,592 Rent $15,000 Salaries and Wages $15,600 Advertising and Promotions $132,987 Research and Development $6,872 Transportation and Shipping $37,900 Administrative Expenses $1,000 Total Operating Expenses $209,359 Operating Income $116,233 Interest Expenses $7,256 $7,256 Income before Taxes $108,977 Income Taxes (40%) $43,591 Income after Taxes $65,386
- 3. Sapid Sweets The Statement of Retained Earnings In thousands of dollars Year ending December 31, 2004 Retained Earnings (beginning balance) $161,922 Net earnings for the year $65,386 Dividends $65,386 Retained earnings (ending balance) $227,308
- 4. Sapid Sweets Balance Sheet In thousands of dollars as at December 31, 2004 ASSETS Current Assets Cash $9,487 Accounts Receivable $59,725 Inventory $55,976 Deferred Taxes $3,098 Prepaid Expenses $10,029 Marketable Securities $150,000 Total Current Assets $288,315 Capital Assets Equipment $65,898 Buildings, Plants and Warehouses $137,900 Total Capital Assets $203,798 Intangible Assets Patent $1,250 Total Intangible Assets $1,250 TOTAL ASSETS $493,363 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short-Term Debt $12,109 Taxes Payable $43,591 Accrued Taxes $2,987 Accounts Payable $20,867 Total Current Liabilities $79,554 Long-Term Debt $136,501 Total Liabilities $216,055 Shareholders' Equity Shareholders' Equity $50,000 Retained Earnings $227,308
- 5. Total Shareholders' Equity $277,308 $493,363 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
- 6. Sapid Sweets Sources and Uses of Funds In thousands of dollars December 31, 2004 December 31, 2003 Sources Uses ASSETS Cash $9,487 $18,460 $8,973 Accounts Receivable $59,725 $60,267 $542 Inventory $55,976 $75,976 $20,000 Deferred Taxes $3,098 $3,098 Prepaid Expenses $10,029 $15,529 $5,500 Marketable Securities $150,000 $120,000 $30,000 Total Current Assets $288,315 $293,330 Capital Assets Equipment $65,898 $100,000 $34,102 Buildings, Plants and Warehouses $137,900 $137,900 Total Capital Assets $203,798 $237,900 Intangible Assets Patent $1,250 $1,250 Total Intangible Assets $1,250 $1,250 TOTAL ASSETS $493,363 $532,480 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities
- 7. Short-Term Debt $12,109 $75,000 $62,891 Taxes Payable $43,591 $37,436 $6,155 Accrued Taxes $2,987 $2,987 Accounts Payable $20,867 $25,879 $5,012 Total Current Liabilities $79,554 $141,302 Long-Term Debt $136,501 $179,256 $42,755 Total Liabilities $216,055 $320,558 Shareholders' Equity Shareholders' Equity $50,000 $50,000 Retained Earnings $227,308 $161,922 $65,386 Total Shareholders' Equity $277,308 $211,922 $493,363 $532,480 $140,658 $140,658 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
- 8. Sapid Sweets The Statement of Changes in Financial Position In thousands of dollars Year ending December 31, 2004 Operating Activities Income After Taxes $65,386.00 $(65,706.00) Total $(320.00) Financing Activities Payment of Dividends Long Term Loans $(136,501.00) Investments Total $(136,501.00) Investing Activities Purchase of Intangible Assets $1,250.00 Cash Balance Decrease in Cash $8,973.00 Cash at the beginning of the year $18,460.00 Cash at the end of the year $9,487.00 * the negative numbers mean use of cash Net change in non-cash working capital accounts
- 9. Sapid Sweets Balance Sheet ASSETS 31-Dec-04 % 31-Dec-03 % Current Assets Cash $9,487 1.92 $18,460 3.47 Accounts Receivable $59,725 12.11 $60,267 11.32 Inventory $55,976 11.35 $75,976 14.27 Deferred Taxes $3,098 0.63 $3,098 0.58 Prepaid Expenses $10,029 2.03 $15,529 2.92 Marketable Securities $150,000 30.40 $120,000 22.54 Total Current Assets $288,315 58.44 $293,330 55.09 Capital Assets Equipment $65,898 13.36 $100,000 18.78 Buildings, Plants and Warehouses $137,900 27.95 $137,900 25.90 Total Capital Assets $203,798 41.31 $237,900 44.68 Intangible Assets Patent $1,250 0.25 $1,250 0.23 Total Intangible Assets $1,250 0.25 $1,250 0.23 TOTAL ASSETS $493,363 100.00 $532,480 100.00
- 10. LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short-Term Debt $12,109 2.45 $75,000 14.09 Taxes Payable $43,591 8.84 $37,436 7.03 Accrued Taxes $2,987 0.61 $2,987 0.56 Accounts Payable $20,867 4.23 $25,879 4.86 Total Current Liabilities $79,554 16.12 $141,302 26.54 Long-Term Debt $136,501 27.67 $179,256 33.66 Total Liabilities $216,055 27.67 $320,558 33.66 Shareholders' Equity Shareholders' Equity $50,000 10.13 $50,000 9.39 Retained Earnings $227,308 46.07 $161,922 30.41 Total Shareholders' Equity $277,308 56.21 $211,922 39.80 $493,363 100.00 $532,480 100.00 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
- 11. Sapid Sweets Income Statement ASSETS 31-Dec-04 % % 31-Dec-03 % % Sales $525,690 100.00 $538,927 100.00 Cost of Goods Sold $200,098 38.06 $275,070 51.04 Gross Margin $325,592 61.94 $263,857 48.96 Rent $15,000 2.85 $17,000 3.15 Salaries and Wages $15,600 2.97 $14,000 2.60 Advertising and Promotions $132,987 25.30 $89,090 16.53 Research and Development $6,872 1.31 $2,450 0.45 Transportation and Shipping $37,900 7.21 $37,900 7.03 Administrative Expenses $1,000 0.19 $2,570 0.48 Total Operating Expenses $209,359 39.83 $163,010 30.25 Operating Income $116,233 22.11 $100,847 18.71 Interest Expenses $7,256 1.38 $7,256 1.35 $7,256 1.38 $7,256 1.35 Income before Taxes $108,977 23.49 $93,591 20.06 Income Taxes (40%) $43,591 8.29 $37,436 6.95 Income after Taxes $65,386 12.4 $56,155 10.4