A B 1 Bus Adm 202: Managerial Accounting 2 Excel Project 2 3 4 You work in the finance department for We Really Love Cash, Co. and are preparing the yearly Statement of Cash Flows for the company. You will use the following information below to complete the statement. 5 6 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 anlaysis question at the bottom of the template using the information prepared in A) and B). 10 11 12 13 Helpful tip: If you need a refresher on how to complete this project, watch M2 Part 2: Example from Professor C. and the recording of the M2 discussion sessions where these topics are covered! 14 15 16 17 We Really Love Cash, Co. Comparative Balance Sheet December 31 We Really Love Cash, Co. Income Statement For the Year ended December 31, 2020 18 2020 2019 19 20 21 22 23 Assets Cash Accounts Receivable Inventory Property, plant & equipment, niet Total Assets $6,200 5,200 30,000 211,500 $252,900 Sales revenue Cost of goods sold Gross profit Operating expenses Income from before gain and taxes Gain on sale of equipment Income tax expense Net income $4,300 5,500 34,200 215,300 $259,300 24 $127,900 69,800 58,100 46,900 11,200 900 800 $11,300 25 26 27 28 29 30 31 32 Liabilities and Stockholders' Equity Accounts payable Accrued expenses Taxes payable Bonds payable Total liabilities Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 33 34 $1,700 2,000 2,500 60,000 66,200 125,000 61,700 186,700 $252,900 $5,900 2,200 2,600 50,000 60,700 125,000 73,600 198,600 $259,300 35 36 37 40 41 42 Additional data: 1. Depreciation expense of $1,900 is included in the Operating Expenses on the Income Statement. 2. Equipment with an original cost of $35,000 was sold for $20,300. The gain on sale was $900. 3. On June 1, 2020, the company purchased new equipment for cash at a cost of $17,500. 4. The company paid $23,200 in cash dividends for the year. 43 44 45 46 In order to get full points for this project: 18 Rows in blue should accurately reflect financial content worth 1 point each. 9 Cells in green on the template should utilize formulas worth 1 point each. Cells in yellow show the proper format and order of the statement worth 1 point each. 2 Cells in orange provides a correct response to the analysis question. 25 Total Paistearailabi Statement of Cash Flows For the year ended December 31, 2020 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 B) Free Cash Flow: 32 33 34 35 36 37 38 39 40 41 42 43 C) You are in top management at We Really Love Cash, Co. Others in top management want to give MORE in cash dividends to investors. Based on the results of the Free Cash Flow calculation, do you agree that the company has the cash available to increase dividends to the investors right away
