Annas Clothing Store Sdn. Bhd.

2015 and 2016 balance sheets are shown as

below:
Anna's Clothing Store Sdn. Bhd. Balance Sheet
31 December
2016 2015
RM RM
Cash 396,494 542,035
Accounts receivable 708,275 745,632
Inventory 1,152,398 1,152,000
Current assets 2,257,167 2,439,667

Net fixed assets 1,978,455 1,825,641

Total assets 4,235,622 4,265,308

Accounts payable 817,845 811,111

Notes payable 142,551 140,235
Current liabilities 960,396 951,346

Long term debt 1,149,520 954,023

Stockholders equity ? 2,359,939
Total liabilities and equity 4,235,622 4,265,308

Other information:
Sales 2,110,965
Depreciation 112,178
Selling & administrative 339,259
Cost of goods sold 1,459,455
Interest 117,587

Note: Assume the tax rate for this company is at 25% and the company has decided
to pay 40% of its net profit for the year as dividend to its shareholders.

Required:
a) Given the information above, construct the firms 2016 Income Statement for the
year ended 31 December.
b) Calculate the missing figures below:

2016 2015
Common stock 1,552,374 ?
Retained earnings ? 536,214
 Dividends paid ? -
c) Calculate the cash flow from assets for the year ending December 31, 2016.

d) Calculate the cash flow to stockholders and creditors for the year ending
December 31, 2016.

e) Explain and interpret the positive and negative signs of your answers in (a)
through (d).