Question 5: 30% points:The following is a condensed trial balance of Bravo Co., a publicly held company, after adjustments for income tax expense.Bravo Co.Condensed Trial BalanceAccounts12/31/2015 Balances Dr. (Cr .) 12/31/2014 Balances Dr. (Cr.)Cash$484,000 $817,000Accounts receivable, net670,000 610,000Property, plant, and equipment1,070,000 995,000Accumulated depreciation(345,000)(280,000)Dividends payable(25,000) (10,000)Income taxes payable(60,000) (150,000)Deferred income tax liability(63,000)(42,000)Bonds payable(500,000) (1,000,000)Unamortized premium on bonds(71,000) (150,000)Common stock(350,000) (150,000)Additional paid-in capital(430,000)(375,000)Retained earnings(185,000) (265,000)Sales(2,420,000) Cost of sales1,863,000 Selling and administrative expenses220,000 Interest income(14,000)Interest expense46,000Depreciation88,000Loss on sale of equipment7,000Gain on extinguishment of bonds (90,000)Income tax expense105,000_________T otals$0$0Additional information:> During 2015 equipment with an original cost of $50,000 was sold for cash, and equipment costing $125,000 was purchased.> On January 1, 2015, bonds with a par value of $500,000 and related premium of $75,000 were redeemed. The $1,000 face value, 10% par bonds had been issued on January 1, 2006 to yield 8%. Interest is payable annually every December 31 through 2025.> Bravo's tax payments during 2015 were debited to Income Taxes Payable. Bravo recorded a deferred income tax liability of $42,000 based on temporary differences of $120,000 and an enacted tax rate of 35% at December 31, 2014; prior to 2014 there were no temporary differences. Bravo's 2015 financial statement income before income taxes was greater than its 2015 taxable income, due entirely to temporary differences, by $60,000. Bravo's cumulative net taxable temporary differences at December 31, 2015, were $180,000. Bravo's enacted tax rate for the current and future years is 35%.> 60,000 shares of common stock, $2.50 par, were outstanding on December 31, 2014.> Bravo issued an additional 80,000 shares on April 1, 2015.> There were no changes to retained earnings other than dividends declared.Prepare a statement of cash flows using the indirect method. 

BUSN460 Senior ProjectIndividual Financial Analysis Project (CanGo)Week 3Assumptions:At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the IPO and results in goodwill.90% of the online book sales comes from JIT, the other 10% through the inventory which CanGo possesses. 100% of the CD/DVD/MP3 come through CanGo inventory. The result is that 80% of ALL sales is JIT and 20% is inventory.There is one warehouse for shipping of books and one plant for manufacturing.There are three divisions: a CD/DVD/MP3 division, an online gaming division and a books division. All manufacturing takes place in the CD/DVD/MP3 division.The IPO took place at the beginning of 2009.The CD/DVDs were customized beginning in 2008. The MP3 players were built beginning in the start of 2009.The online gaming company was purchased for $30,000,000 and both Elizabeth and Andrew initiated the process.The company began in 2006, has a VC infusion in 2007 and 2008. It showed a profit in 2008 and 2009. Its only profitable division is the online book sales division.It has some type of international operations, hence the need for a "translation gain or loss" in owner's equity.It has an extraordinary loss from fire and a sale of a segment of its business in 2009.Balance SheetASSETSDecember 31, 2009Cash$20,900,000Marketable Securities$117,000,000Accounts Receivable$33,000,000Less: Allowance for Bad Debts$(880,000)Net Accounts Receivable$32,120,000InventoryRaw Materials$2,000,000Work-in-process$1,000,000Finished Goods$5,000,000Inventory Purchased for Resale$24,000,000Total Inventory$32,000,000Plant, Property and Equipment$6,700,000Less: Accumulated Depreciation$(320,000)Net Plant, Property and Equipment$6,380,000Prepaid Expenses$200,000Goodwill and Other Purchased Intangibles$28,000,000Less: Amortization$(700,000)Net Goodwill and Other Purchased Intangibles$27,300,000Total Assets$235,900,000LIABILITIES AND OWNERS' EQUITYAccounts Payable $22,000,000Accrued Advertising $11,800,000Other Liabilities and Accrued Expense$1,400,000Current Portion of Long-Term Debt$2,300,000Long Term Debt$57,400,000Preferred Stock, $100 par value per share, 100,000 authorized, 0 shares issued and outstanding$0Common Stock, $1 par value per share, 250,000,000 shares authorized, 13,000,000 shares issued, 12,900,000 outstanding$13,000,000Additional Paid-in-Capital in excess of par value, Common Stock$117,000,000Treasury Stock$(1,000,000)Retained Earnings (less Cash Dividends Paid)$12,000,000$11,000,000Total Liabilities and Owner's Equity$235,900,000Income StatementDecember 31, 2009December 31, 2008Sales Revenues$51,000,000$10,300,000Less: Sales Returns$(1,000,000)$(300,000)Net Sales Revenues$50,000,000$10,000,000Less: Cost of Goods Sold$(9,000,000)$(4,000,000)Gross Profit$41,000,000$6,000,000Operating Expenses:Advertising and Sales$(26,000,000)$(3,000,000)Depreciation$(160,000)Salaries and Wages$(1,700,000)$(1,400,000)Product Development$(4,000,000)$(1,200,000)Merger and Acquisition Related Costs, including Amortization of Goodwill and Other Intangibles$(700,000)$0Total Operating Expenses$(32,560,000)Income from Continuing Operations Before Income Taxes$8,440,000Less: Income Taxes at 35%$(2,954,000)Income from Continuing Operations$5,486,000Discontinued Operations:Income from Operations of Discontinued Division (less applicable income taxes)$350,000Loss on Disposal of Discontinued Division (less applicable income taxes)$(150,000)Total Gain from Discontinued Operations$200,000Extraordinary Items:Loss from fire (less applicable income taxes)$(200,000)Net Income$5,486,000Divisional RevenuesBooks$15,000,000$7,000,000Online gaming$25,000,000Customized MP3/CD/DVD$10,000,000$3,000,000Customized MP3/CD/DVD Inventory at end of 2009$8,000,000

ACCT 323