Exhibit 5-1

Cartell Paper Products

Balance Sheet
December 31, 2012 and 2011

12/31/11 12/31/12
Current Assets:
Cash $ 4,600 $ 3,100
Accounts Receivable 9,600 7,900
Inventory 17,500 18,600
Supplies 1,200 2,100
Prepaid Insurance 1,400 1,000
Total Current Assets 34,300 32,700
Long-term Assets:
Fixed Assets 71,000 58,000
Accumulated Depreciation (30,400) (26,500)
Patent 6,000 7,100
Total Long-term Assets 46,600 38,600
Total Assets $ 80,900 $ 71,300

Current Liabilities:
Accounts Payable $ 6,100 $ 4,900
Wages Payable 2,200 2,600
Interest Payable 800 1,000
Taxes Payable 2,300 1,600
Total Current Liabilities 11,400 10,100
Long-term Liabilities: Bonds Payable 20,300 24,000
Total Liabilities 31,700 34,100
Stockholders' Equity:
Common Stock 22,700 20,000
Retained Earnings 26,500 17,200
Total Stockholders' Equity 49,200 37,200
Total Liabilities and Stockholders' Equity $ 80,900 $ 71,300
 Cartell Paper Products
Income Statement
For the Year Ended December 31, 2012

Sales $147,600
Cost of Goods Sold 63,800
Gross Profit 83,800
Less Operating Expenses:
Wage Expense $ 40,100
Supply Expense 3,600
Insurance Expense 3,000
Depreciation Expense 3,900
Amortization Expense 1,100
Rent Expense 5,400 57,100
Operating Income 26,700
Interest Expense 2,600
Income before Taxes 24,100
Income Tax Expense 10,800
Net Income $ 13,300

1) Referring to Exhibit 5-1, what was the cash collected from customers by Cartell Paper Products in 2012?
2) Referring to Exhibit 5-1, how much inventory did Cartell Paper Products purchase in 2012?
3) Referring to Exhibit 5-1, what was the cash paid to suppliers of inventory by Cartell Paper Products in
2012?

4) Referring to Exhibit 5-1, what was the cash paid to employees by Cartell Paper Products in 2012? ?
5) Referring to Exhibit 5-1, what was the cash paid for supplies by Cartell Paper Products in 2012?
(Assume all purchases of supplies were for cash.)
6) Referring to Exhibit 5-1, what was the cash paid for income taxes by Cartell Paper Products in 2012?
7) Referring to Exhibit 5-1, what was the net cash flow from operations for Cartell Paper Products in
2012?
8) Referring to Exhibit 5-1, what was the cash paid from the purchase of fixed assets by Cartell Paper
Products in 2012? Assume no fixed assets were sold in 2012.
9) Referring to Exhibit 5-1, what was the net cash flow from investing activities for Cartell Paper Products
in 2012?
10) Referring to Exhibit 5-1, what were the dividends paid by Cartell Paper Products in 2012?
Stepp Entertainment has the following selected balance sheet and income statement information:

For the Year Ended

Income Statement Accounts December 31, 2012

Income Tax Expense $ 15,000

Cost of Goods Sold 164,000
Sales 523,000
Wage Expense 88,000

Balance Sheet Accounts At December 31, 2012 At December 31, 2011

Accounts Payable $19,000 $17,000
Cash 19,000 12,000
Income Taxes Payable 21,000 9,000
Accounts Receivable 41,000 36,000
Inventory 12,000 23,000
Wages Payable 5,000 12,000

Determine the following items for Stepp Entertainment for the year ended December 31, 2012:
a. Cash received from customers

Sales - increase in accounts receivable = 523,000 - (41,000 - 36,000) = 518000

b. Cash paid to suppliers

c. Cash paid for wages

d. Cash paid for income taxes