Question

Use the balance sheet and income statement below:

VALIUM’S MEDICAL SUPPLY CORPORATION Balance Sheet as of December 31, 2015 and 2014 (in thousands of dollars)
	2015			2014					2015			2014
Assets								Liabilities and Equity
Current assets:								Current liabilities:
Cash and marketable securities	$	89		$	88			Accrued wages and taxes	$	64		$	58
Accounts receivable		208			198			Accounts payable		166			158
Inventory		328			308			Notes payable		148			148
Total	$	625		$	594			Total	$	378		$	364
Fixed assets:								Long-term debt:	$	653		$	590
Gross plant and equipment	$	1,124		$	916			Stockholders’ equity:
Less: Depreciation		180			130			Preferred stock (6 thousand shares)	$	6		$	6
								Common stock and paid-in surplus		120			120
Net plant and equipment	$	944		$	786			(100 thousand shares)
Other long-term assets		168			168			Retained earnings		580			468
Total	$	1,112		$	954			Total	$	706		$	594
Total assets	$	1,737		$	1,548			Total liabilities and equity	$	1,737		$	1,548

VALIUM’S MEDICAL SUPPLY CORPORATION Income Statement for Years Ending December 31, 2015 and 2014 (in thousands of dollars)
	2015				2014
Net sales	$	926			$	836
Less: Cost of goods sold		406				369
Gross profits	$	520			$	467
Less: Other operating expenses		64				58
Earnings before interest, taxes, depreciation,   and amortization (EBITDA)	$	456			$	409
Less: Depreciation		50				48
Earnings before interest and taxes (EBIT)	$	406			$	361
Less: Interest		65				59
Earnings before taxes (EBT)	$	341			$	302
Less: Taxes		148				128
Net income	$	193			$	174
Less: Preferred stock dividends	$	6			$	6
Net income available to common stockholders	$	187			$	168
Less: Common stock dividends		75				75
Addition to retained earnings	$	112			$	93
Per (common) share data:
Earnings per share (EPS)	$	1.87			$	2
Dividends per share (DPS)	$	0.75			$	0.75
Book value per share (BVPS)	$	7.00			$	5.88
Market value (price) per share (MVPS)	$	8.03			$	6.36

Prepare a statement of cash flows for Valium’s Medical Supply Corporation. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

  

Statement of Cash Flows for Year Ending December 31, 2015 (in thousands of dollars)
A. Cash flows from operating activities
(Click to select)Net incomeNet loss	$
Additions (sources of cash):
(Click to select)Increase in fixed assetsIncrease in accrued wages and taxesDepreciationIncrease in accounts payableIncrease in other long-term assets
(Click to select)Increase in accrued wages and taxesIncrease in accounts payableDepreciationIncrease in other long-term assetsIncrease in fixed assets
(Click to select)Increase in accounts payableDepreciationIncrease in fixed assetsIncrease in other long-term assetsIncrease in accrued wages and taxes
Subtractions (uses of cash):
(Click to select)Increase in notes payableIncrease in common and preferred stockIncrease in inventoryIncrease in other long-term assetsIncrease in accounts receivable
(Click to select)Increase in common and preferred stockIncrease in inventoryIncrease in other long-term assetsIncrease in accounts receivableIncrease in notes payable
Net cash flow from operating activities	$
B. Cash flows from investing activities
Subtractions:
(Click to select)Increase in notes payableIncrease in accrued wages and taxesIncrease in other long-term assetsIncrease in long-term debtIncrease in fixed assets	$
(Click to select)Increase in accrued wages and taxesIncrease in notes payableIncrease in fixed assetsIncrease in long-term debtIncrease in other long-term assets
Net cash flow from investing activities	$
C. Cash flows from financing activities
Additions:
(Click to select)Increase in notes payableIncrease in long-term debtIncrease in accounts payableIncrease in inventoryIncrease in common and preferred stock	$
(Click to select)Increase in accounts payableIncrease in notes payableIncrease in long-term debtIncrease in inventoryIncrease in common and preferred stock
(Click to select)Increase in notes payableIncrease in inventoryIncrease in common and preferred stockIncrease in long-term debtIncrease in accounts payable
Subtractions:
(Click to select)Preferred stock dividendsIncrease in accounts payableIncrease in other long-term assetsIncrease in inventoryCommon stock dividends
(Click to select)Increase in accounts payablePreferred stock dividendsIncrease in other long-term assetsCommon stock dividendsIncrease in inventory
Net cash flow from financing activities	$
D. Net change in cash and marketable securities	$

Answer 1