Question

The following represents a condensed version of a firm's current and projected balance sheets, as well...

The following represents a condensed version of a firm's current and projected balance sheets, as well as a condensed version

of their projected income statement. From the information given, please prepare a “formal” Statement of Cash Flows” projected for the firm as of December 31, 2020.

                                                                                                    2020                         2019                                               2020

                                          Cash                                              $ 2,000                  $ 1,600               Sales               $100,000

                                          Accts. Receivable                      12,000                      5,200               CGS                  80,000

                                          Inventory                                    14,000                   15,600               Gross Profit       20,000

                                          Total Current Assets                    28,000                   22,400                Cash Expenses   8,000

                                          Fixed Assets                               27,000                   20,000               Depreciation       1,600

                                          Accum. Depreciation                (16,000)                 (14,400)              Amortization      1,500

                                          Goodwill                                         20,500                    22,000               EBIT                   8,900

                                          Total Assets                                $59,500                  $50,000               Less-Interest          900

                                                                                                                                                                EBT                     8,000

                                          Accounts Payable                       $ 3,000                  $ 2,500               Less – Taxes       3,200

                                          Accrued Expense                            1,000                      1,500               Net Income     $ 4,800

                                          Notes Payable - Currently Due    4,000                       3,000              

                                          Total Current Liabilities                8,000                      7,000

                                          Notes Payable – Non-Current       7,700                      2,000              

                                          Common Stock                               9,000                      9,000

                                          Retained Earnings                        34,800                   32,000

                                          Total Liabilities & Capital       $59,500                  $50,000

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