This is a comprehensive problem all contained on this spreadsheet tab. You are to prepare a cash flow statement, a verticalanalysis, a horizontal analysis, and some ratio calculations. Scroll down the spreadsheet to complete each part.Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended 12/31/2015.They have completed the balance sheet and income statement as shown.Philadelphia Widget CorporationIncome StatementFor the year ended 12/31/2015RevenueCost of Goods SoldGross ProfitAdministrative Expenses:SalariesRentDepreciationTotal Administrative ExpenseOperating Profit 1,235,000806,356428,644 212,45082,50024,800319,750108,894 Gain on Sale of EquipmentInterest ExpenseNet Income 4,500(42,115)71,279Philadelphia Widget CorporationBalance SheetAs of 12/31/2015, 12/31/2014, and 12/31/20132015 CashAccounts ReceivableInventoryPrepaid ExpensesTotal Current AssetsLandBuildings and EquipmentAccumulated DepreciationTotal Assets Accounts PayableWages payable 182,45078,900 2014119,41185,45541,60014,500260,966 89,56483,11848,56018,100239,342 50,000 50,000 103,550 172,45062,600 109,850 414,516 399,192 62,5254,500 51,4804,500 Unearned Revenue 3,000 – Current Portion of Long-Term DebtTotal Current Liabilities 50,000120,025 50,000105,980 Long-Term Debt 175,000 225,000 Common Stock, 3500 shares outstandingRetained EarningsTotal Stockholders’ Equity 35,00084,491 Total Liabilities and Equity 35,00033,212119,491 68,212 414,516 399,192 A. Prepare a Statement of Cash Flow using the indirect method for 2015 using the above statements and the following addition1. Equipment costing $30,000 was purchased in 2015.2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 2015.3. A dividend of $20,000 was declared and paid in 2015.Philadelphia Widget CorporationStatement of Cash FlowFor the year ended 12/31/2015 B. Prepare a vertical analysis (1 year) of the income statement above and a horizontal analysis (2 years) of the balance sheet.Philadelphia Widget CorporationVertical Analysis of Income Statement Philadelphia Widget CorporationHorizontal Analysis of Balance Sheet * n/c = not calculableC. Calculate the following ratios based on 12/31/2015 numbers:1. Earnings per share2. Return on common stockholder’s equity3. Return on assets4. Current ratio5. Acid-test ratio6. Accounts receivable turnover w statement, a vertical d 12/31/2015. 2013105,64478,40062,60024,000270,64450,000166,80054,580 112,220432,864 45,2001,500 50,00096,700275,00035,00026,16461,164432,864 and the following additional information: or $16,000 during 2015. s) of the balance sheet.
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