P1-6 Learning Objective 4: Analyzing a company's financial statements
Summarized versions of Espinola Corporation's financial statements follow for two recent years, 20X7 and 20X6 (In Thousands):
Income Statement:
Revenue: 11,070
Cost of goods sold: 1,230
Other expenses: 1,500
Income before income taxes: 8,340
Income taxes (35% tax rate): 2,919
Net income: 5,421
Statement of Changes in Equity:
Beginning balance: 3,260
Shares bought back: (80)
Net income: 5,421
Dividends: (140)
Ending balance: 8,461
Balance Sheet:
Assets:
Cash: 850
Property, plant, and equipment: 1,750
Other assets: 10,404
Total assets: 12,004
Liabilities:
Current liabilities: 5,690
Notes payable and long-term debt: 4,300
Other liabilities: 6,014
Total liabilities: 16,004
Shareholders' Equity:
Share capital: 460
Retained earnings: 4,309
Total shareholders' equity: 4,769
Cash Flows Statement:
Net cash provided by operating activities: 850
Net cash used in investing activities: (325)
Net cash used in financing activities: (560)
Increase (decrease) in cash: (90)
Cash at beginning of year: 1,230
Cash at end of year: 1,140