... AutoSave O OFF MAP ? C ... 1 Course Budget Project Template v.1 Fall 2022 Q Home Insert Draw Page Layout Formulas Data Review View ? Tell me Share Comments Calibri (Body) 11 AA General Conditional Formatting v Insert v O 1 1/11 Format as Table x Delete Paste BIUVV OVA $ ~ % " Editing Analyze Sensitivity Cell Styles Format v Data N25 X V fx G H M N 0 P Q R S See instructions and additional information real at the bottom of the page (starting on line 28) DGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET 20XX Feb 20XX Mar 20XX Apr 20XX May 20XX Jun 20XX Jul 20XX Aug 20XX Sep 20XX Oct 20XX Nov 20XX Dec 20XX Operating Cash Flow Net Income (16,555) [10,728 8.225 6.98 21,18 18.940 11.565 11,598 24,322 (15,636) (43,677) (51,051) Add Back Depreciation EES'OT 10,833 12,916 13,541 13,541 16,041 16,041 16,041 16,666 16,666 16,666 16,666 Decrease/[Increase) in AR 129,150 (85,575) (119,138) [59,569) (105,084) (52,542) 1,029 514 47,743) 147,429 176,314 115,457 Decrease/[Increase) in Finished Goods 16,223 16,223 45,846 45,846 60,658 32,445 17,633 17,633 17,633 2,821 (26,803) crease/[Increase) in Raw Materials Decrease/[Increase) in Prepaid Increase/[Decrease) in Payable 79,839 16,195 45,309 11,327 43,324 10,831 (12,104) (3,026] 24,923 (85,621) (76,709) (33,989) Increase/[Decrease) in Accruals Cash Flow From Operations (38,809) (53,052] (6,841) 18,135 33,625 25,715 34,164 42,761 35,80 65,659 45,792 47,083 15 Investing Cash Flows Capital Purchases [250,000) (75,000) (300,000) (75,000) Cash from Disposals Cash Flow from Investing (250,000) (75,000) (300,000] (75,000) Financing Cash Flows Borrowing 250,000 75,000 300,000 75,000 22 Payments on Debt (11,714) (11,753 13,042] (13,461] (13,506) (15,051) 15,101) [15,151) (15,577) [15,629) [15,681) (15,733 23 Cash Flow from Financing (11,714] (11,753) 236,958 61,539 (13,506) 284,949 (15,101) (15,151 59,423 (15,629) (15,681) (15,733) Total Cash Flow (50,523) (64,805) (19,883) 4,675 20,119 10,665 19,064 27,610 20,226 50,030 30,111 31,351 26 27 Instructions The cash flow statement is a change statement that shows changes in the Balance Sheet and the effect on cash (this was covered in the Ch. 17 materials). The total cash flows on line 25 increase/decrease an organization's cash balance. There are three sections to the Cash Flow Statement - Operating, Investing, and Financing, which are outlined above for ABC Company. Please notice the following: -The effect of the capital purchases (from Comp. 2a Capital Purchases) on cash flow Notice the effect of financing for the capital purchases on cash flows. Please complete the following: J. Calculate the effect on cash flows of the ending inventory (in cell MB) calculated on the Balance Sheet (in cell N7 there) 2). In the yellow box below, describe why the ending inventory value had the effect on cash flow (cell MB) that it did 3). In the yellow box below, discuss why it is important to budget and forecast the Cash Flow Statement. 4). In the yellow box below, please discuss how a rolling forecast vs. a fixed budget could help forecast cash flows and Commentary 32 Please use the yellow box below to answer the questions (2,3,4) above. 33 Comp. 1 Income Stmt Comp. 1a Sales&Production Budget COGS Comp. 2 Balance Sheet Comp. 2.a Capital Purchases A Comp. 3 Cash Flows + Ready x Accessibility: Investigate " - + 90%