Projected financial statement of Omron Inc is as follows: M/S Omron Inc. Income Statement For the year ending December

Question

Projected financial statement of Omron Inc is as follows: M/S Omron Inc. Income Statement For the year ending December 31, 2020 Net Sales $9,500 Cost of goods sold 6,650 Gross Profit 2,850 Other Expenses Selling & Admin expenses Depreciation EBIT Interest EBT Income tax expense Net Income 1.200 100 1550 150 1400 350 $1,050 M/S Omron Inc. Balance Sheet As on December 31, 2020 Yr. 2020 Cash $ 1,200 Accounts receivables 1,750 Inventories 1,250 Total Current Assets 4,200 Property, plant & equipment 4,600 Less: Accumulated Depreciation 1,200 Net Property, plant & equipment 3,400 Long-term investments 970 Total Assets 8,570 Yr. 2019 $ 850 1,200 1,360 3,410 3,900 1,100 2.800 1,110 7,320 Accounts payable Accrued wages payable Interest payable Income tax payable Total Current Liabilities 1,100 250 70 200 1,620 800 350 120 50 1,320 1,100 1,400 Long-term Bonds Stockholder equity: Common stock Paid-in capital Retained earnings Total Stockholder equity Total liabilities and stock holder equity

Help In Homework · Accepted Answer

Solution to a Dividend paid during a year = Opening retained earnings + Net Income – Closing retained earnings So Dividend for 2020 = 3600 + 1050 – 4450 Dividend for 2020 = $ 200 Solution to b Cash flow statament for year ending 31st December 2020 Amount Amount Cash flow from Operations Net Income 1050 Add : Depreciation 100 Change in working capital items Increase in accounts receivables -550 Decrease in inventories 110 Increase in accounts payables 300 Decrease in accrued wages -100 Decrease in Interest payable -50 Increase in Income tax payable 150 Net change in working capital -140 -140 Net cash flow form operations 1010 Cash flow from Investing activities CAPEX (4600 - 3900 ) -700 Sale of long term investments 140 Net cash flow from investing activities -560 Cash flow from financing activities Long term bonds repaid -300 Increase in paid in capital 330 Increase in share capital 70 Dividend paid -200 Interest paid (120 + 150 - 70) Net cash flow from financing activities -100 Net change in cash balance 350 Add: Opening cash balance 850 Closing cash balance 1200 Solution to c Paid in capital is the amount paid by investors at the time of issuance of share capital in excess of par value. Paid in capital will increase when new share capital is issued at a price more than the par value. This difference in price is added in paid in capital balance

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Projected financial statement of Omron Inc is as follows: M/S Omron Inc

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Archived Solution

Cash flow statament for year ending 31st December 2020
	Amount	Amount
Cash flow from Operations
Net Income		1050
Add : Depreciation		100
Change in working capital items
Increase in accounts receivables	-550
Decrease in inventories	110
Increase in accounts payables	300
Decrease in accrued wages	-100
Decrease in Interest payable	-50
Increase in Income tax payable	150
Net change in working capital	-140	-140

Net cash flow form operations		1010

Cash flow from Investing activities
CAPEX (4600 - 3900 )		-700
Sale of long term investments		140

Net cash flow from investing activities		-560

Cash flow from financing activities
Long term bonds repaid		-300
Increase in paid in capital		330
Increase in share capital		70
Dividend paid		-200
Interest paid (120 + 150 - 70)

Net cash flow from financing activities		-100

Net change in cash balance		350
Add: Opening cash balance		850
Closing cash balance		1200