Given is a partial balance sheet and income statement for Louis, Inc.pdf

Given is a partial balance sheet and income statement for Louis, Inc.
a) fill in the missing information for the balance sheet and income sheet and income statement
for Louis, Inc. b) what is the bash flow from assets? c) what is the cash flow to creditors? d) what
is the current ratio? e) what is the debt to equity ratio? f) what is you retire at age 50 but live
forever?Balance Sheet20142015Current Assets225407Fixed Assets150Total Assets557Current
Liabilities234Long-Term Liabilities6052Stockholders\' Equity223Total liabilities/SE601
Solution
A.
Balance Sheet
2014
2015
Current Assets
225
407
Fixed Assets
376
150
Total Assets
601
557
Current Liabilities
318
234
Long-Term Liabilities
60
52
Stockholders\' Equity
223
271
Total liabilities/SE
601
557
Income Statement
2015
1000
333
285
382
49
333
100
233
B.
Cash Flow from assets = Current Year Assets – Previous Year Assets
= (407 + 150) – (225+ 376)
= 557 – 601
= (44)
Cash Flow from Assets increased by $44
C.
Cash Flow from Liability = Current Year Liability – Previous Year Liability
= (234 + 52) – (318+ 60)
= 286 - 378
= (92)
Cash Flow from Liability decreased by $92
D.
Current Ratio = Current Asset / Current Liabilities
= 407 / 234
= 1.74
A.
Balance Sheet
2014
2015
Current Assets
225
407
Fixed Assets
376
150
Total Assets
601
557
Current Liabilities
318
234
Long-Term Liabilities
60
52
Stockholders\' Equity
223
271
Total liabilities/SE
601
557.

1. Given is a partial balance sheet and income statement for Louis, Inc.
a) fill in the missing information for the balance sheet and income sheet and income statement
for Louis, Inc. b) what is the bash flow from assets? c) what is the cash flow to creditors? d) what
is the current ratio? e) what is the debt to equity ratio? f) what is you retire at age 50 but live
forever?Balance Sheet20142015Current Assets225407Fixed Assets150Total Assets557Current
Liabilities234Long-Term Liabilities6052Stockholders\' Equity223Total liabilities/SE601

Solution

A.
Balance Sheet
2014
2015
Current Assets
225
407
Fixed Assets
376
150
Total Assets
601
557
Current Liabilities
318
234
Long-Term Liabilities
60
52
Stockholders\' Equity
223
271
Total liabilities/SE
601
557
Income Statement

2. 2015
1000
333
285
382
49
333
100
233
B.
Cash Flow from assets = Current Year Assets – Previous Year Assets
                                                = (407 + 150) – (225+ 376)
                                                = 557 – 601
                                                = (44)
Cash Flow from Assets increased by $44
C.
Cash Flow from Liability = Current Year Liability – Previous Year Liability
                                                = (234 + 52) – (318+ 60)
                                                = 286 - 378
                                                = (92)
Cash Flow from Liability decreased by $92
D.
Current Ratio = Current Asset / Current Liabilities
                                = 407 / 234
                                = 1.74
A.
Balance Sheet
2014
2015
Current Assets
225
407
Fixed Assets
376
150
Total Assets

3. 601
557
Current Liabilities
318
234
Long-Term Liabilities
60
52
Stockholders\' Equity
223
271
Total liabilities/SE
601
557