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Pippen Co Balance Sheet
For the period ended 12/31/X1 ($000)
				ASSETS
		12/31/X0			12/31/X1
Cash		$	2,900		$	1,021
Receivables			19,342			24,489
Inventory			10,184			14,330
CURRENT ASSETS		$	32,426		$	39,840
Fixed assets
Gross		$	79,159		$	96,225
Accum. deprec.			(60,515)			(68,366)
Net		$	18,644		$	27,859
TOTAL ASSETS		$	51,070		$	67,699
				LIABILITIES & EQUITY
Accts payable		$	2,560		$	6,209
Accruals			797			993
CURRENT LIABILITIES		$	3,357		$	7,202
Long-term debt		$	36,564		$	48,630
Equity			11,149			11,867
TOTAL CAPITAL		$	47,713		$	60,497
TOTAL LIABILITIES AND EQUITY		$	51,070		$	67,699

Pippen Corp
Income Statement
For the period ended 12/31/X1
($000)
Revenue		$	83,416
COGS			39,654
Gross margin		$	43,762
Expenses		$	34,086
EBIT		$	9,676
Interest			3,947
EBT		$	5,729
Tax			2,011
EAT		$	3,718

1. In order to increase sales, the management decided they would make a low end product, which can be sold for less and meet the needs of the budget-conscious consumer. The statements above reflect their financial situation at the completion of the first year after implementing this new idea.

1. The company sold no new stock but paid dividends of $3,000. The depreciation for the year was $7,851 and no fixed assets were sold.

1. Construct a statement of cash flows for the company by filling in the blanks given below. Use a minus sign, to indicate any decreases in cash or cash outflows. If an amount is zero, enter "0".

2. No $ signs in your answers. Use commas for the thousands.

Pippin Corp

Statement of Cash Flows, period ending 12/31/X1

Operating Activities

Net Income $

Depreciation $

Net Changes in Current Accounts: $__

Cash from Operating Activities: $

Investing Activities

Increase in Gross Fixed Assets: $

Cash from investing activities: __$__

Financing Activities

Increase in Long Term Debt $

Dividend $

Sale of Stock $

Cash from Financing Activities: __$__

NET CASH FLOW: __$__

Reconciliation

Beginning Cash balance $

NET Cash Flow $

Ending Cash Balance $

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