FIN 331 Homework
Due Thursday, January 29, 2008
Construct the 2008 statement of cash flows for Powell Panther Corporation:
Powell Panther Corporation
Balance Sheets as of December 31, 2007 and 2008
2007
2008
2007
2008
Assets
Liabilities and Owner’s Equity
Current assets
Cash
Accounts receivable
Inventory
$10.0
150.0
200.0
$12.0
180.0
180.0
Current Liabilities
Accounts payable
Accruals
Notes payable
$90.0
60.0
51.5
$108.0
67.0
72.0
Total
$360.0
$372.0
Total
$201.5
$247.0
Fixed assets
Net plant and equipment
$250.0
$300.0
Long-term debt
Owners’ Equity
Common stock
Retained earnings
$150.0
$50.0
208.5
$150.0
$50.0
225.0
Total
$258.5
$275.0
Total assets
$610.0
$672.0
Total
$610.0
$672.0
Powell Panther Corporation
2008 Income Statement
Net sales
Operating costs (except deprec & amort)
Depreciation and amortization
$1,200.0
1,020.0
30.0
Operating income (EBIT)
Interest paid
$150.0
21.7
Taxable income
Taxes (40%)
$128.3
51.3
Net income
$77.0
Dividends
Addition to retained earnings
$60.5
$16.5
