4 You work in the finance department for Cash, Bucks & Dough, Co. and are preparing the yearly Statement of Cash Flows for the company. You will use the following information below to complete 5 6 the statement. 7 8 9 Directions: A) Using the information below and the template on the next tab, prepare a statement of cash flows (indirect method). B) Also using the template on the next tab, compute free cash flow. C) Respond to the analysis question at the bottom of the template using the information prepared in A) and B). 10 11 Helpful tip: If you need a refresher on how to complete this project, watch M2 Part 2: Example from Professor C., your M2 Discussion Recording from Alaina, and review your M2 post-assignment. 12 13 14 15 16 17 Cash, Bucks & Dough, Co. Comparative Balance Sheet December 31 Cash, Bucks & Dough, Co. Income Statement For the Year ended December 31, 2020 18 19 20 2020 2019 21 22 23 24 25 26 Assets Cash Accounts Receivable Inventory Property, plant & equipment, net Total Assets $6,200 7,200 30,000 211,500 $254,900 $4,300 7,500 35,300 215,300 $262,400 Sales revenue Cost of goods sold Gross profit Operating expenses Income from before gain and taxes Gain on sale of machinery Income tax expense Net income $128,300 69,800 58,500 46.900 11,600 1,600 800 $12,400 27 28 29 30 31 32 33 34 35 36 37 Liabilities and Stockholders' Equity Accounts payable Accrued wages payable Accrued utilities payable Bonds payable Total liabilities Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $1,600 2,100 2,500 62,000 68,200 125,000 61,700 186,700 $254,900 $7,000 2,200 2,600 62,000 73,800 115,000 73,600 188,600 $262,400 38 39 40 41 42 Additional data: 1. Depreciation expense of $2,500 is included in the Operating Expenses on the Income Statement. 2. Machinery with an original cost of $24,000 was sold for $21,000. The gain on sale was $1,600. 3. On June 1, 2020, the company purchased more land for cash at a cost of $18,100. 4. The company paid $24,300 in cash dividends for the year. 43 44 45 46 47 48