Income Statement Balance Sheet Next Year This Year Next Year Revenue $5,000 Total assets $1,000 $2,000 Operating expenses 4,000 Liabilities & equity: EBIT 1,000 Current liabilities $  576 $  200 Interest (8%)   ?   Long-term debt 100 ? EBT  ?   Equity    324 ? Taxes(40%)   ?   Earnings after tax   ?   Total liabilities & equity $1,000 $2,000 The firm pays 8% interest on all of its debt and is subject to a 40% tax rate. Complete the plan.      1.   Emperor Corporation's financial statements for the last year are shown below. The firm paid a $1,000 dividend to its stockholders during the year. There were no sales of new stock. Balance Sheets ASSETS Ending Beginning Income Statement Cash    $ 2,000  $ 1,600  Sales $100,000 Accounts receivable   12,000   5,200  COGS    80,000 Inventory    14,000  15,600 Gross Margin $ 20,000 Current Assets $28,000  $22,400  Cash Expenses $  8,000 Gross Fixed assets $27,000   $20,000  Depreciation    1,600 Accumulated depreciation (16,000 ) (14,400 ) EBIT  $ 10,400 Net fixed assets  11,000   5,600  Interest       800 Total assets  $39,000 $28,000 EBT  $  9,600 LIABILITIES Tax     2,600 Accounts payable   $ 3,000   $ 2,500  Net Income $  7,000 Accruals 1,000   1,500 Current Liabilities  $ 4,000   $ 4,000  Long term Debt  10,000     5,000  Equity  25,000  19,000 Total liabilities & equity $39,000 $28,000 Develop Emperor's Statement of Cash Flows. .

1. Income Statement
Balance Sheet

2. Next Year
This Year
Next Year
Revenue
$5,000
Total assets
$1,000
$2,000
Operating expenses
4,000
Liabilities & equity:
EBIT
1,000
Current liabilities
$ 576
$ 200
Interest (8%)
?
Long-term debt
100
?
EBT
?
Equity
324
?
Taxes(40%)
?
Earnings after tax

3. ?
Total liabilities
& equity
$1,000
$2,000
The firm pays 8% interest on all of its debt and is subject to a
40% tax rate. Complete the plan.
1. Emperor Corporation's financial statements for the last
year are shown below. The firm paid a $1,000 dividend to its
stockholders during the year. There were no sales of new stock.
Balance Sheets
ASSETS
Ending
Beginning
Income Statement
Cash
$ 2,000
$ 1,600
Sales
$100,000
Accounts receivable
12,000
5,200
COGS
80,000
Inventory

4. 14,000
15,600
Gross Margin
$ 20,000
Current Assets
$28,000
$22,400
Cash Expenses
$ 8,000
Gross Fixed assets
$27,000
$20,000
Depreciation
1,600
Accumulated depreciation
(16,000
)
(14,400
)
EBIT
$ 10,400
Net fixed assets
11,000
5,600
Interest
800
Total assets
$39,000
$28,000
EBT
$ 9,600

5. LIABILITIES
Tax
2,600
Accounts payable
$ 3,000
$ 2,500
Net Income
$ 7,000
Accruals
1,000
1,500
Current Liabilities
$ 4,000
$ 4,000
Long term Debt
10,000
5,000
Equity
25,000
19,000

6. Total liabilities & equity
$39,000
$28,000
Develop Emperor's Statement of Cash Flows.