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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

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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 Workshoot Blank Quick Cash Flow (in 8000s) Company Name W US OFA U S Net profit Plus Depreciation, amortization expense Plus (or less) Working investment Equals Cash after operating sale Plus (or less) Oross fixed assets Equals Cosh after capital investment cycle Less Dividends declared Equals Cosh available for a debt repayment Less: Current portion long-term debt (prior year) Equals: Cash available for other debtropayment BEGINNING ENDING 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 BEGINNING ENDING Change in working investment Accounts receivable (net) Plus: Inventory Less Accounts payable Loss: Accrued expenses Equals: Working investment 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 ENDING 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

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