These are the questions – The details of Company’s income statements are given below after the qu… Assignment Help


These are the questions – The details of Company’sincome statements are given below after the questions.Cash Flow Statement1) The 2016 comparative income statement and the 2016comparative balance sheet of AMK, Inc. have just been distributedat a meeting of the company’s Board of Directors. The members ofthe board raise a fundamental question: Why is the cash balance solow? This question is especially hard to understand because 2016showed record profits. As the controller of the company, you mustanswer the question.Requirements:Compute the amount of AMK, Inc. acquisition of plant assets.AMK, Inc. disposed of plant assets at book value. The cost andaccumulated depreciation of the disposed asset was $44,400. No cashwas received upon disposal.b) Compute new borrowing or payment oflong-term notes payable, with AMK, Inc. having only one long-termnote payable transaction during the year.c) Compute the issuance of commonstock with AMK, Inc. having only one common stock transactionduring the year.d) Compute the payment of cashdividends.e) Using the data above with theincluded financial statements, prepare the company’s statement ofcash flows – indirect method – for the year ended December 31,2016.f) Considering net income and thecompany’s cash flows during 2016, was it a good year or a bad year?Give your reasons.  2.) Using the Apple, Inc. Statement ofCash flows on the following page, answer the followingquestions:a) Which method does Apple use toreport net cash flows from operating activities? How do youknow?b) Apple earned net income during2016. Did operations provide cash or use cash during 2016? Give theamount. How did operating cash during 2016 compare with 2015?c) For the year ended September 24,2016, did Apple pay cash dividends? If so, how much?d) For the year ended September 24,2016, did Apple use cash to purchase property, plant, andequipment? If so, how much?Apple Inc., Consolidated Statement of CashFlowsUSD $ in millions12 months endedSep 24, 2016Sep 26, 2015Net income45,68753,394Depreciation and amortization10,50511,257Share-based compensation expense4,2103,586Deferred income tax expense4,9381,382Accounts receivable, net1,095611Inventories217-238Vendor non-trade receivables-51-3,735Other current and non-current assets1,090-179Accounts payable1,7915,400Deferred revenue-1,5541,042Other current and non-current liabilities-2,1048,746Changes in operating assets and liabilities48411,647Adjustments to reconcile net income to cash generated byoperating activities20,13727,872Cash generated by operating activities65,82481,266Purchases of marketable securities-142,428-166,402Proceeds from maturities of marketable securities21,25814,538Proceeds from sales of marketable securities90,536107,447Payments made in connection with business acquisitions, net-297-343Payments for acquisition of property, plant and equipment-12,734-11,247Payments for acquisition of intangible assets-814-241Payments for strategic investments-1,388–Other-110-26Cash used in investing activities-45,977-56,274Proceeds from issuance of common stock495543Excess tax benefits from equity awards407749Payments for taxes related to net share settlement of equityawards-1,570-1,499Payments for dividends and dividend equivalents-12,150-11,561Repurchases of common stock-29,722-35,253Proceeds from issuance of long-term debt, net24,95427,114Repayments of term debt-2,500–Change in commercial paper, net-3972,191Cash generated by (used in) financingactivities-20,483-17,716Increase (decrease) in cash and cashequivalents-6367,276Cash and cash equivalents, beginning of the year21,12013,844Cash and cash equivalents, end of the year20,48421,120Source: Apple Inc., Annual ReportsSource: www.stock-analysis-on.netCopyright © 2017 Stock Analysis on NetThe Comapny’s Income Statement and BalanceSheetAMK, Inc.Income StatementYear Ended December 31, 2016Financial Statements in U.S. DollarsSales Revenue$714,000Cost of Goods Sold347,000Gross Profit367,000Operating Expenses:Depreciation Expense$52,000Other Operating Expenses205,000Total Operating Expenses257,000Net Income$110,000AMK, Inc.Comparative BalanceSheetDecember 31, 2016 and2015Financial Statements in U.S. Dollars20162015AssetsCurrent Assets:Cash$19,000$18,000Accounts Receivable54,00049,000Merchandise Inventory81,00089,000Long-Term Assets:Plants Assets265,200219,600Accumulated Depreciation – PlantAssets(44,200)(36,600)Investments95,00077,000Total Assets$470,000$416,000LiabilitiesCurrent Liabilities:Accounts Payable$73,000$72,000Salaries Payable2,0005,000Long-Term Liabilities:Notes Payable59,00066,000Total Liabilities134,000143,000Stockholders’ EquityCommon Stock47,00034,000Retained Earnings289,000239,000Total Stockholders’ Equity336,000273,000Total Liabilities and Stockholders’ Equity$470,000$416,000

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