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acc-Barko Industries




Question;Barko Industries Balance Sheet (Partial) Year 3 Year 4 Cash $70,000 $9,640 AR 70,000 85,000 Inventories 87,000 84,000 Accounts Payable 48,000 51,000 Barko Industries Income Statement For the Year Ending December 31, Year 4 Sales $560,000 Operating Expenses $420,000 Depreciation Expense 46,000 466,000 Income Before Taxes $94,000 Income Tax Expense $37,600 Net Income $56,400 Other Data: ?Barko Industries sold an asset and recorded a loss on the sale of $8.700. The sale price was $220,000 and the asset was originally purchased for $360,000. ?Dividends paid in Year 4 were $22, 460. Required: 1.Prepare a statement of cash flows for the year ending December 31, Year 4 using the indirect method. 2.What conclusions could you arrive at regarding the cash position of the firm? 3.What information was provided in the statement of cash flows that was not evident if just the balance sheet and the income statement were examined? Part Two: Final Project Week 3: Investing and Financing Activities, Interim Presentation of Findings Examine the statement of cash flows for the companies you selected in Week 1 for the most recent year. Address the following concerns: 1.What are the two largest investing activities and financing activities for each firm? 2.Compare and contrast the investing and financing activities of the two companies. 3.Evaluate the investing and financing strategies of the two firms? Provide a rationale for your opinion as to the effectiveness of each of the strategies.


Paper#42561 | Written in 18-Jul-2015

Price : $25