Instructions: With the following information, create a Cash Flow Statement
COMPA A XZ, SA de CV
Balance Sheet (amounts in thousands of pesos)
2011 2012
Assets
Cash 170 157
Investments 2,615 1,247
Customers 8,955 6,763
Net Inventory 4,370 2,815
Total Current Assets 16,110 10,982
Building 5,000 5,000
Equipment 8,900 8,000
Depreciation 2,198 1,400
Total Fixed Assets 11,702 11,600
Installation costs 3,000 3,000
Amortization 450 300
Total deferred assets 2,550 2,700
TOTAL ASSETS $ 30,362 $ 25,282
LIABILITIES
Suppliers 4,675 4,200
Creditors 384 400
Taxes payable 275 150
TOTAL LIABILITIES $ 5,334 $ 4,750
SHAREHOLDER S EQUITY
Social Capital 10,000 10,000
Retained earnings 15,832 11,798
Net income 4,496 4,034
Dividends 5,300 5,300
TOTAL CAPITAL 25,028 20,532
TOTAL LIABILITIES AND SHAREHOLDER S EQUITY 30,362 25,282
COMPA A XZ, SA de CV
Income statement (amounts in thousands of pesos)
2012 2011
Sales 54,947 42,624
Sales costs 31,427 20,150
Gross income 23,520 22,474
Administrative expenses 3,600 3,100
Sales expenses 3,100 2,500
Distribution costs 3,900 2,700
Productions costs 2,285 1,897
Total Operating Costs 12,885 10,197
Operating income 10,635 12,277
Financial expenses 2,947 4,814
Utilidad/perdida cambiaria 195 386
Pretax profit 7,493 7,077
Income Tax 2,248 2,335
Share of profits between the workers 749 708
Net income 4,496 4,034

According with this information and after creating the cash flow statement answer the following questions
What is the net income of the company?
How much did the company generate or apply in operation?
How much did the company generate or apply in funding and investment?
Which is the most representative entry of each of these groups?

Week 6

Homework

According the financial statements from week 5 of XZ, S.A. de C.V. (Cash Flow Statement), you have to calculate and interpret the following financial ratios.

1. Liquidity

2. Profitability

3. Leverage

4. Capital structure