Case Link Question (10) Directions: Click the Worksheet Link above and use the Quick Cash Flow Worksheet to answer this question: What does it mean if a business has negative cash after operating cycle and positive cash available for other debt repayment as shown on the quick cash flow worksheet? The business paid a large dividend. The business sold or otherwise disposed of fixed assets. The business had a very profitable operating cycle. The business had insufficient cash with which to pay current portion of long-term debt. Quick Cash Flow Worksheet-Blank Quick Cash Flow (in $000s) Company Name GFA ( US Net profit Plus: Depreciation, amortization expense Plus (or less): A Working investment Equals: Cash after operating cycle Plus (or less): A Gross foxed assets Equals: Cash after capital investment cycle Less: Dividends declared Equals: Cash available for all debt repayment Less: Current portion long-term debt (prior year) Equals: Cash available for other debt repayment Change in working investment Accounts receivable (net) Plus Inventory Less: Accounts payable Less: Accrued expenses Equals: Working investment BEGINNING ENDING BEGINNING ENDING Beginning working investment Less Ending working investment Equals: A Working investment Change in working investment Accounts receivable (net) Plus: Inventory Less: Accounts payable Less: Accrued expenses Equals: Working investment Beginning working investment Less: Ending working investment Equals: A Working investment Change in working investment BEGINNING ENDING Accounts receivable (net) Plus: Inventory Less Accounts payable Less Accrued expenses Equals: Working investment Beginning working investment Less Ending working investment Equals: A Working investment Are any changes in income taxes payable, interest payable, prepaid expenses, investments, or miscellaneous other accounts large enough to distort quick cash flow? Case Link Question (10) Directions: Click the Worksheet Link above and use the Quick Cash Flow Worksheet to answer this question: What does it mean if a business has negative cash after operating cycle and positive cash available for other debt repayment as shown on the quick cash flow worksheet? The business paid a large dividend. The business sold or otherwise disposed of fixed assets. The business had a very profitable operating cycle. The business had insufficient cash with which to pay current portion of long-term debt. Quick Cash Flow Worksheet-Blank Quick Cash Flow (in $000s) Company Name GFA ( US Net profit Plus: Depreciation, amortization expense Plus (or less): A Working investment Equals: Cash after operating cycle Plus (or less): A Gross foxed assets Equals: Cash after capital investment cycle Less: Dividends declared Equals: Cash available for all debt repayment Less: Current portion long-term debt (prior year) Equals: Cash available for other debt repayment Change in working investment Accounts receivable (net) Plus Inventory Less: Accounts payable Less: Accrued expenses Equals: Working investment BEGINNING ENDING BEGINNING ENDING Beginning working investment Less Ending working investment Equals: A Working investment Change in working investment Accounts receivable (net) Plus: Inventory Less: Accounts payable Less: Accrued expenses Equals: Working investment Beginning working investment Less: Ending working investment Equals: A Working investment Change in working investment BEGINNING ENDING Accounts receivable (net) Plus: Inventory Less Accounts payable Less Accrued expenses Equals: Working investment Beginning working investment Less Ending working investment Equals: A Working investment Are any changes in income taxes payable, interest payable, prepaid expenses, investments, or miscellaneous other accounts large enough to distort quick cash flow
