A B D E F G H K L 1 2 ACCT 302 Cash Flow Assignment Smith Resort Instructions 3 4 5 Part I: You are to complete the attached Cash Flow Worksheet. Review the comprehensive cash flow spreadsheet example in the textbook before completing this assignment. You are 6 to complete the same type of analysis here. 7 *Please note that the Problem Data can be found on the 3rd tab. 8 *The Cash Flow Worksheet where you will be completing this assignment is on the 2nd tab. To complete a Cash Flow Statement you must have comparative Balance sheets, the Income Statement, and 9 some additional information to assist in the analysis. 10 The Income Statement and additional information are on the Problem Data tab. 11 The Balance Sheet amounts are on the Cash Flow Worksheet. 12 To complete the worksheet: *Enter analysis entries in Column D and F. * Label each analysis entry with a letter (a, b, c, d, ...). Put the letter labeling each analysis entry in columns Cand E. 13 14 *(You are to enter formulas in the 12/31/14 balance column (Column G). For the formula you must take the beginning 12/31/13 balance and add or subtract the analysis entries in columns D and F. (See the textbook example put into a demonstration excel spreadsheet at eLearn. This will help you understand how to set up the excel spreadsheet.) The correct 12/31/14 balance is shown in the Column labeled Check Figure (Column H). After entering all of the analysis entries (in Columns D and F) the balance in the 12/31/14 Balance column (where you entered the formulas) should equal the number in Check Figure column if the entries in the analysis columns are correct. If the 12/31/14 Balance column does not equal the Check Figure, either an 15 analysis entry is missing or the amount is incorrect. 16 Sum each of the analysis columns. The balances should agree. 17 Part II: Complete the written analysis. 18 19 20 21 22 23 - - - + Cell Styles Data B26 fx A B D E F G H 1 J K L M N 1 Smith Resort Statement of Cash Flows PART II: 2 PARTI Balance Analysis Balance Debit Accounts Compare the net income to the cash provided by operating activities. Identify the cause of any differences. Debit Credit 12/31/14 4 Cash 5 Accounts Receivable 6 Merchandise Inventory 7 Prepaid expenses 8 Equipment 9 Buildings 10 Trademark 11 12/31/13 4,000 97,000 54,000 6,000 43,000 121,000 83,000 408,000 Check figures 2,500 105,000 91,000 4,000 94,000 171,000 79,000 546,500 12 Credit Accounts 13 Accumulated Depreciation-Mach 14 Accumulated Depreciation - Bldg 15 Accounts Payable 16 Income Taxes Payable 17 Wages Payable 18 Short-term Notes Payable-to bank 19 Long-Term Note Payable 20 Common Stock, no par 21 Retained Earnings 22 18,000 10,000 65,000 15,700 9,000 23,500 12,000 82,200 21,800 4,000 23,500 75,000 170,000 134,500 546,500 125,000 120,000 45,300 408,000 23 24 Operating Activities 25 26 27 28 A B D E F G 7 Income Statement 8 Yr ended 12/31/14 9 Sales $ 570,200 10 Cost of Goods Sold (302,000) 11 Gross Profit 268,200 12 Operating Expenses (94,000) 13 Income from Operations 174,200 14 Interest Expense (20,500) 15 Loss on Sale of Equipment (4,000) 16 Income before Income Taxes 149,700 17 Income Tax Expense (40,500) 18 Net Income $ 109,200 19 20 Additional information: 21 1. Dividends in the amount of $20,000 were declared and paid during 2014. 22 2. Depreciation expense and amortization expense are included in operating expenses. 23 3. Equipment with a cost of $25,000 and was 20% depreciated was sold during 2014. 24 4. A Building was purchased and paid for by issuing $50,000 of Common Stock. ** When analyzing the changes in balance sheet accounts, if there is no additional information, always assume the 25 obvious change. 26 27 o
