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The Baldwin company currently has the following balances on their balance sheet: Assets $162,358 Common Stock $10,427 Retained earnings $83,700 Suppose next year the Baldwin Company generates $20,000 in net profit, pays $10,000 in dividends, assets change to $151,000, and common stock remains unchanged. What must their total liabilities be next year?

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$46,873 $26,873 $68,231 $57,300

Balance Sheet SSETS 2019 Commorn Size 18.2% 10.4% 13.1% 2018 EFINITIONS: Common Size: The common e column simply represents each item as a of total assets for that year. Cash: $29,551 $16,833 $21.188 S34,265 $13,995 $17,792 r end-of-year cash position. Accounts ivable: Reflects the lag between delivery Receivable payment of your products. Inventories: The Inventory value of your inventory across all otal Current Assets $67,572 $66,052 A zero indicates your company out. Unmet demand would, of course all to your competitors. Plant & Equipment & Equipment $154,160 95.0% -36.6% 58.4% 100.0% ($49,097 $68 $134,114 e current value of your plant. Accum Deprec: Accumulated Depreciation total accumulated depreciation from youxed Assets nt. Accts Payable: What the company 94,785 owes suppliers for materials and otal Assets $162.358 s. Current Debt: The debt the company s obligated to pay during the next year of ABILITIES&OWNERS It includes emergency loans used to EQUITY p your company solvent should you run out cash during the year. Long Term Debt: The Accounts Payabl s long term debt is in the form of and this represents the total value of nt Debt Term Debt $10,516 $21,094 $36,620 6.5% 13.0% 22.6% 9.4 $29,201 $26,171 r bonds. Common Stock: The amount of invested by shareholders in the company.Total Liabilities $68,230 42.0% $64,801 etained Earnings: The profits that the y chose to keep instead of paying to n Stock as dividends Earnings $83,700 51 6% 58 096 100.0% $58,7 $69,313 $134,114 Total Equity Total Liab. &O. Equity $162,358 Cash Flow Statement Cash Flows from Operating Activities: 2019 2018 $25,818 $15,621 $10,277 $7,811 he Cash Flow Statement examines what happened in the Cash during the year. Cash injections appear as positive numbers and Net Income (Loss) h withdrawals as negative numbers. The Cash Flow Statement is an Depreciation t tool for diagnosing emergency loans. When negative cash Extraordinary gainslosses/writeoffs sO $1,087 $1,610 (S3,396) ($4,562 ($2,838) ($2,022 exceed positives, you are forced to seek emergency funding. For Accounts Payable if sales are bad and you find yourself carrying an abundance of Inventory s inventory, the report would show the increase in inventory as a

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