Homework SourseThis and all the following problems use the following income
This and all the following problems use the following income statement and balance sheet for Ezra Inc so you need to copy-paste it in Excel only once. Note, the marketable securities are an investing item and other non-current liabilities are a financing item that carry an interest charge.
Ezra Inc. Balance Sheet as of December 31st
2015
2014
ASSETS
Cash
$12,802
$9,821
Marketable securities
8,730
8,201
Accounts and notes receivable—Trade
40,831
39,160
Inventories
15,641
17,313
Deferred income taxes
2,547
1,772
Prepayments
1757
1274
Total Current Assets
$82,308
$77,541
Property, plant, and equipment, at cost
143,302
142,344
Less accumulated depreciation
(79,601)
(72,651)
Deferred income taxes
1,844
1,975
Intangible assets (patents)
8,455
6,775
Total Assets
$156,308
$155,984
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts and notes payable—Trade
$19,716
$21,655
Notes payable to banks
20,688
19,802
Current portion of long-term debt
300
300
Other current liabilities
13,370
17,344
Total Current Liabilities
$54,074
$59,101
Long-term debt
17,743
16,887
Deferred income taxes
3,361
0
Other noncurrent liabilities (financing, interest bearing)
349
416
Total Liabilities
$75,527
$76,404
Common stock
$21,516
$21,516
Additional paid-in capital
30,024
30,024
Retained earnings
30,909
28,711
Accumulated other comprehensive income
(659)
(659)
Treasury stock
(1,009)
(12)
Total Shareholders’ Equity
$80,781
$79,580
Total Liabilities and Shareholders’ Equity
$156,308
$155,984
Income Statement
2015
2014
Sales
$832,780
$861,520
Cost of goods sold
(545,170)
(560,160)
Selling and administrative expenses
(280,017)
(292,381)
Interest expense
(4,212)
(7,320)
Income tax expense
(1,183)
(581)
Net Income
$2,198
$1,078
Dividends paid
0
0
Marginal and Effective Tax rate
35%
35%
How much cash did Ezra spend or free up from its Property, Plant, and Equipment?
($3,167)
$5,992
$14,990
($958)
| Ezra Inc. Balance Sheet as of December 31st | 2015 | 2014 |
| ASSETS | ||
| Cash | $12,802 | $9,821 |
| Marketable securities | 8,730 | 8,201 |
| Accounts and notes receivable—Trade | 40,831 | 39,160 |
| Inventories | 15,641 | 17,313 |
| Deferred income taxes | 2,547 | 1,772 |
| Prepayments | 1757 | 1274 |
| Total Current Assets | $82,308 | $77,541 |
| Property, plant, and equipment, at cost | 143,302 | 142,344 |
| Less accumulated depreciation | (79,601) | (72,651) |
| Deferred income taxes | 1,844 | 1,975 |
| Intangible assets (patents) | 8,455 | 6,775 |
| Total Assets | $156,308 | $155,984 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Accounts and notes payable—Trade | $19,716 | $21,655 |
| Notes payable to banks | 20,688 | 19,802 |
| Current portion of long-term debt | 300 | 300 |
| Other current liabilities | 13,370 | 17,344 |
| Total Current Liabilities | $54,074 | $59,101 |
| Long-term debt | 17,743 | 16,887 |
| Deferred income taxes | 3,361 | 0 |
| Other noncurrent liabilities (financing, interest bearing) | 349 | 416 |
| Total Liabilities | $75,527 | $76,404 |
| Common stock | $21,516 | $21,516 |
| Additional paid-in capital | 30,024 | 30,024 |
| Retained earnings | 30,909 | 28,711 |
| Accumulated other comprehensive income | (659) | (659) |
| Treasury stock | (1,009) | (12) |
| Total Shareholders’ Equity | $80,781 | $79,580 |
| Total Liabilities and Shareholders’ Equity | $156,308 | $155,984 |
