Integrated Mini-Case
Working with Financial Statements

Shown below are the partial financial statements for Garners’ Platoon Mental Health Care, Inc. Fill in the blanks on the four income statements.

Table Summary: Balance sheet for 2026 and 2027. The following cells are blank: cash and marketable securities for 2026, accounts receivable for 2027, total for 2026, gross plant and equipment for 2027, net plant and equipment for 2026, other long-term assets for 2027, total assets for 2027. Notes payable for 2027, long-term debt for 2026, common stock and paid-in surplus for 2026.
	2027	2026		2027	2026
Assets			Liabilities and Equity
Current assets:			Current liabilities:
Cash and marketable securities	$ 421	$_____	Accrued wages and taxes	$316	$242
Accounts receivable	_____	1,020	Accounts payable	867	791
Inventory	1,760	1,581	Notes payable	_____	714
Total	$3,290	$_____	Total	$2,055	$1,747
Fixed assets:			Long-term debt:	$3,090	$_____
Gross plant and equipment	$_____	$4,743	Stockholders’ equity:
Less: Accumulated depreciation	840	640	Preferred stock (30 million shares)	$60	$60
Net plant and equipment	$4,972	$_____	Common stock and paid-in surplus (200 million shares)	637	______
Other long-term assets	_____	790	Retained earnings	3,312	2,440
Total	$5,864	$4,893	Total	$4,009	$3,137
Total assets	$_____	$7,889	Total liabilities and equity	$9,154	$7,889

Table Summary: Balance sheet for
2026 and 2027. The following cells are blank: cash and marketable securities
for 2026, accounts receivable for 2027, total for 2026, gross plant and
equipment for 2027, net plant and equipment for 2026, other long-term assets
for 2027, total assets for 2027. Notes payable for 2027, long-term debt for
2026, common stock and paid-in surplus for 2026.

GARNERS’ PLATOON MENTAL HEALTH
CARE, INC.

Balance Sheet as of December 31,
2027 and 2026
(in millions of dollars)

2027

2026

2027

2026

Assets

Liabilities and Equity

Current assets:

Current liabilities:

Cash and marketable securities

$ 421

$_____

Accrued wages and taxes

$316

$242

Accounts receivable

_____

1,020

Accounts payable

867

791

Inventory

1,760

1,581

Notes payable

_____

714

Total

$3,290

$_____

Total

$2,055

$1,747

Fixed assets:

Long-term debt:

$3,090

$_____

Gross plant and equipment

$_____

$4,743

Stockholders’ equity:

Less: Accumulated depreciation

840

640

Preferred stock (30 million shares)

$60

Net plant and equipment

$4,972

$_____

Common stock and paid-in surplus (200 million shares)

637

______

Other long-term assets

_____

790

Retained earnings

3,312

2,440

Total

$5,864

$4,893

Total

$4,009

$3,137

Total assets

$_____

$7,889

Total liabilities and equity

$9,154

$7,889

Table Summary: Income statement for 2027 and 2026. The following cells are blank: net sales for 2026, less cost of goods sold for 2027, EBIT for 2026, less interest for 2027, less taxes for both years, less preferred stock dividends for 2026, addition to retained earnings for 2026, and everything under common per share data for both years.
	2027	2026
Net sales	$ 4,980	$______
Less: Cost of goods sold	______	2,035
Gross profits	$ 2,734	$ 2,313
Less: Other operating expenses	125	100
Earnings before interest, taxes, depreciation, and amortization (EBITDA)	$ 2,609	$ 2,213
Less: Depreciation	200	191
Earnings before interest and taxes (EBIT)	$ 2,409	$______
Less: Interest	______	285
Earnings before taxes (EBT)	$ 2,094	$ 1,737
Less: Taxes (21 percent)	______	______
Net income	$1,654	$1,372
Less: Preferred stock dividends	$ 60	$______
Net income available to common stockholders	$ 1,594	$ 1,312
Less: Common stock dividends	722	722
Addition to retained earnings	$872	$______
Per (common) share data:
Earnings per share (EPS)	$______	$______
Dividends per share (DPS)	$______	$______
Book value per share (BVPS)	$______	$______
Market value (price) per share (MVPS)	$26.850	$22.550

Table Summary: Income statement for
2027 and 2026. The following cells are blank: net sales for 2026, less cost
of goods sold for 2027, EBIT for 2026, less interest for 2027, less taxes
for both years, less preferred stock dividends for 2026, addition to retained
earnings for 2026, and everything under common per share data for both
years.

GARNERS’ PLATOON MENTAL HEALTH
CARE, INC.

Income Statement for Years Ending
December 31, 2027 and 2026
(in millions of dollars)

2027

2026

Net sales

$ 4,980

$______

Less: Cost of goods sold

______

2,035

Gross profits

$ 2,734

$ 2,313

Less: Other operating expenses

125

100

Earnings before interest, taxes, depreciation, and amortization
(EBITDA)

$ 2,609

$ 2,213

Less: Depreciation

200

191

Earnings before interest and taxes (EBIT)

$ 2,409

$______

Less: Interest

______

285

Earnings before taxes (EBT)

$ 2,094

$ 1,737

Less: Taxes (21 percent)

______

Net income

$1,654

$1,372

Less: Preferred stock dividends

$ 60

$______

Net income available to common stockholders

$ 1,594

$ 1,312

Less: Common stock dividends

722

Addition to retained earnings

$872

$______

Per (common) share data:

Earnings per share (EPS)

$______

Dividends per share (DPS)

$______

Book value per share (BVPS)

$______

Market value (price) per share (MVPS)

$26.850

$22.550

Table Summary: Statement of cash flows for 2027. Everything is left blank except for net change in cash and marketable securities: 26.
Section A. Cash flows from operating activities
Net income	$______
Additions:
Depreciation	______
Increase in accrued wages and taxes	______
Increase in accounts payable	______
Subtractions:
Increase in accounts receivable	______
Increase in Inventory	______
Net cash flow from operating activities	$______
Section B. Cash flows from investing activities
Subtractions:
Increase in fixed assets	$______
Increase in other long-term assets	______
Net cash flow from investing activities	$______
Section C. Cash flows from financing activities
Additions:
Increase in notes payable	$______
Increase in long-term debt	_____
Increase in common and preferred stock	_____
Subtractions:
Pay preferred stock dividends	______
Pay common stock dividends	______
Net cash flow from financing activities:	$______
Section D. Net change in cash and marketable securities	$26

Table Summary: Statement of cash
flows for 2027. Everything is left blank except for net change in cash and
marketable securities: 26.

GARNERS’ PLATOON MENTAL HEALTH
CARE, INC.

Statement of Cash Flows for Year
Ending December 31, 2027
(in millions of dollars)

Section A. Cash flows from operating activities

Net income

$______

Additions:

Depreciation

______

Increase in accrued wages and taxes

______

Increase in accounts payable

______

Subtractions:

Increase in accounts receivable

______

Increase in Inventory

______

Net cash flow from operating activities

$______

Section B. Cash flows from investing activities

Subtractions:

Increase in fixed assets

$______

Increase in other long-term assets

______

Net cash flow from investing activities

$______

Section C. Cash flows from financing activities

Additions:

Increase in notes payable

$______

Increase in long-term debt

_____

Increase in common and preferred stock

_____

Subtractions:

Pay preferred stock dividends

______

Pay common stock dividends

______

Net cash flow from financing activities:

$______

Section D. Net change in cash and marketable securities

$26

Table Summary: Statement of retained earnings for 2027. Everything is left blank except the balance of retained earnings, December 31, 2026: $2,440.
Balance of retained earnings, December 31, 2026		$ 2,440
Plus: Net income for 2027
Less: Cash dividends paid
Preferred stock	$______
Common stock	$______
Total cash dividends paid
Balance of retained earnings, December 31, 2027		$_______

Table Summary: Statement of
retained earnings for 2027. Everything is left blank except the balance of
retained earnings, December 31, 2026: $2,440.

GARNERS’ PLATOON MENTAL HEALTH
CARE, INC.

Statement of Retained Earnings as
of December 31, 2027
(in millions of dollars)

Balance of retained earnings, December 31, 2026

$ 2,440

Plus: Net income for 2027

Less: Cash dividends paid

Preferred stock

$______

Common stock

$______

Total cash dividends paid

Balance of retained earnings, December 31, 2027

$_______

Integrated Mini-CaseWorking with Financial Statements

Integrated Mini-Case
Working with Financial Statements