Answer:
Mara Corporation
a) Income Statement for the year 2018:
Sales $4,507
Cost of goods sold 2,633
Gross profit $1,874
Depreciation -952
Interest -196
Income before tax $726
Tax (21% of $726) -152
Net Income $574
Retained Earnings 370 (2017)
Dividends -352
Retained Earnings $592
b) Balance Sheet for 2017 and 2018
Current assets $2,205 $2,429
Net fixed assets 7,344 7,650
Total Assets $9,549 $10,079
Current liabilities $1,003 $1,255
Long-term debt 3,106 2,085
Retained Earnings 370 592
Common Stock * 5,070 6,147
Total Liab.+Equity $9,549 $10,079
Common Stock figures have been obtained as balancing figures.
c) Calculation of Cash Flow in 2018:
i) From Assets:
Increases in Current Assets -$224
Increases in Fixed Assets -306
Total assets cash outflow $530
ii) To creditors:
Increases in Current Liabilities = $252
Decreases in Long-term debt = -1,021
Total creditors cash outflow $769
iii) To stockholders:
Increases in Dividends = $352
Explanation:
a) 2017 Income Statement:
Sales $4,203
Cost of goods sold 2,422
Gross profit $1,781
Depreciation -785
Interest -180
Income before tax $816
Tax (21% of $726) -171
Net Income $645
Dividends -275
Retained Earnings $370
b) Cash flow to stockholders is the amount of cash that a company pays out to its shareholders in the form of cash dividends. Stock dividends are not cash flow to stockholders.
