Individual Project Case Study
CorpA Balance Sheets
| Corporation A | ||||
| Comparative Balance Sheets | ||||
| As of December 31 | ||||
| Assets: | 20X3 | 20X2 | 20X1 | |
| Cash | $ 210,000 | $ 780,000 | $ 1,530,000 | |
| Accounts Receivable | 315,000 | 265,000 | 240,000 | |
| Inventory | 436,000 | 405,000 | 330,000 | |
| Prepaid Insurance | 15,000 | 18,000 | 21,000 | |
| Total Current Assets | $ 976,000 | $ 1,468,000 | $ 2,121,000 | |
| Land | 1,650,000 | 1,630,000 | 1,400,000 | |
| Buildings | 2,300,000 | 1,760,000 | 1,400,000 | |
| Less: Accumulated Depreciation | (560,000) | (490,000) | (440,000) | |
| Net Buildings | 1,740,000 | 1,270,000 | 960,000 | |
| Total Long-Term Assets | 3,390,000 | 2,900,000 | 2,360,000 | |
| Total Assets | 4,366,000 | 4,368,000 | 4,481,000 | |
| Liabilities & Stockholder’s Equity | ||||
| Accounts Payable | 215,000 | 134,000 | 185,000 | |
| Salaries and Wages Payable | 63,000 | 49,000 | 40,000 | |
| Dividends Payable | 69,702 | 36,818 | 0 | |
| Notes Payable—Line of Credit | 356,000 | 205,000 | 98,000 | |
| Total Current Liabilities | 703,702 | 424,818 | 323,000 | |
| Notes Payable—Long-Term | 1,393,722 | 949,811 | 1,017,219 | |
| Bonds Payable | 1,000,000 | 1,000,000 | 1,000,000 | |
| Less: Discount on Bonds Payable | (41,583) | (48,317) | (54,603) | |
| Net Bonds Payable | 958,417 | 951,683 | 945,397 | |
| Total Long-term Liabilities | 2,352,139 | 1,901,494 | 1,962,617 | |
| Total Liabilities | 3,055,841 | 2,326,312 | 2,285,617 | |
| Contributed Capital | 1,500,000 | 1,500,000 | 1,500,000 | |
| Retained Earnings | 1,449,159 | 1,080,688 | 730,383 | |
| Treasury Stock | (1,639,000) | (539,000) | (35,000) | |
| Total Stockholders’ Equity (SE) | 1,310,159 | 2,041,688 | 2,195,383 | |
| Total Liabilities & Stockholdler’s Equity | $4,366,000 | $4,368,000 | $4,481,000 |
CorpA Income Statements
| Corporation A | ||||
| Comparative Income Statements | ||||
| For the 12 Months Ended December 31 | ||||
| 20X3 | 20X2 | 20X1 | ||
| Sales Revenue | $4,010,000 | $3,400,000 | $2,300,000 | |
| Cost of Goods Sold Expense | (2,520,000) | (1,910,000) | (940,000) | |
| Salaries and Wages Expense | (660,000) | (840,000) | (750,000) | |
| Depreciation Expense-Building | (115,000) | (88,000) | (70,000) | |
| Insurance Expense | (117,000) | (102,000) | (95,000) | |
| Total Expenses | (3,412,000) | (2,940,000) | (1,855,000) | |
| Operating Income | 598,000 | 460,000 | 445,000 | |
| Interest Expense—Notes | (76,911) | (69,591) | (54,749) | |
| Interest Expense—Bonds | (66,734) | (66,286) | (65,868) | |
| Gain (Loss) Sale of Buildings | (2,000) | 45,000 | (51,000) | |
| Gain (Loss) Sale of Land | (3,000) | 43,000 | 7,000 | |
| Total Other | (148,645) | (47,877) | (164,617) | |
| Net Income | $449,355 | $412,123 | $280,383 | |
| Earnings per share | $6.71 | $4.74 | $2.83 |
CorpA Statement of Cash Flows
| Corporation A | |||
| Comparative Statements of Cash Flow | |||
| For the 12 Months Ended December 31 | |||
| For the 12 Months Ended December 31 | 20X3 | 20X2 | |
| Cash received from customers | $ 3,938,484 | $ 3,335,116 | |
| Cash paid to suppliers | -2,470,000 | -2,022,000 | |
| Cash paid for salaries and wages | -646,000 | -831,000 | |
| Cash paid for insurance | -114,000 | -99,000 | |
| Cash paid for income taxes | -145,556 | -129,709 | |
| Cash paid for interest—Bonds | -60,000 | -60,000 | |
| Cash paid for interest—Notes Payable | -52,740 | -66,946 | |
| Net Cash from Operating Activities | $ 450,188 | $ 126,461 | |
| Investment in Land | -300,000 | -1,420,000 | |
| Investment in Building | -930,000 | -640,000 | |
| Sale of Building | 343,000 | 287,000 | |
| Sale of Land | 277,000 | 1,233,000 | |
| Net Cash from Investing Activities | $ (610,000) | $ (540,000) | |
| Proceeds (Payment) Notes Payable | -32,188 | 128,539 | |
| (Purchase) Sale Treasury Stock | -330,000 | -440,000 | |
| Dividends Paid | -48,000 | -25,000 | |
| Cash from Financing Activities | $ (410,188) | $ (336,461) |