Baldwin vijayanand k Round 3, 12/31/2012

Balance Sheet

ASSETS 2012 2011Common Size

Cash $19,995 12.9% $35,170Accounts Receivable $15,482 10.0% $13,609Inventory $26,716 17.3% $16,479Total Current Assets $62,193 40.3% $65,258

Plant & Equipment $148,500 96.1% $115,100Accumulated Depreciation ($56,227) -36.4% ($46,327)Total Fixed Assets $92,273 59.7% $68,773

Total Assets $154,467 100.0% $134,030

LIABILITIES & OWNER'S EQUITY

Accounts Payable $10,253 6.6% $9,749Current Debt $19,878 12.9% $29,641Long Term Debt $35,820 23.2% $26,158Total Liabilities $65,951 42.7% $65,548

Common Stock $7,733 5.0% $7,935Retained Earnings $80,783 52.3% $60,547Total Equity $88,516 57.3% $68,482

Total Liabilities and Owner's Equity $154,467 100.0% $134,030

Cash Flow StatementCash Flows from Operating Activities 2012 2011Net Income (Loss) $21,776 $15,069Adjustment for non-cash items

Depreciation $9,900 $7,673Extraordinary gains/losses/writeoffs $0 $0

Change in Current Assets and LiabilitiesAccounts Payable $504 $2,645Inventory ($10,237) ($11,604)Accounts Receivable ($1,874) ($1,646)

Net cash from operations $20,070 $12,139

Cash Flows From Investing ActivitiesPlant Improvements ($33,400) ($21,700)

Cash Flows from Financing ActivitiesDividends Paid $0 $0Sales of Common Stock $0 $0Purchase of Common Stock ($1,743) ($1,022)Cash from long term debt $9,662 $14,669Retirement of long term debt $0 ($10,300)Change in current debt (net) ($9,763) $15,623Net cash from financing activities ($1,844) $18,970

Net change in cash position ($15,174) $9,409

Closing cash position $19,995 $35,170

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Definitions: Common Size - The common size column simply represents each item as a percentage of total assets. Cash - Your end of year cash position. Accounts Receivable - Reflects the lag between delivery and payment of your products. Inventories - The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment - The current value of your plant. Accum Deprec - The total accumulated depreciation from your plant. Accts Payable - What the company currently owes suppliers for materials and services. Current Debt - The debt the company is obligated to pay during the next year of operations. It includes your short term debt, bonds that have matured this year, and emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt - The company's long term debt is in the form of bonds, and this represents the total of those bonds. Common Stock - The amount of capital invested by shareholders in the company. Retained Earnings - The profits that the company chose to keep instead of paying to shareholders as dividends.

The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers.

The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash, and force you to beg for money to keep you afloat.

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$0

$10,000

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$30,000Cash FlowSummary

Operations

Investments

Financing

Change