Case Link Question (2) 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 positive amount on the line titled "Cash available for ALL debt repayment and a negative amount on the line titled "Cash available for OTHER debt repayment", as shown on the Quick Cash Flow worksheet? The business had enough cash flow available to pay only a portion of its current portion of long-term debt. The business had enough cash flow to make payments on its current debt, but no excess for payments on additional debt. The business had enough cash flow to fund expansion of fixed assets, but not enough to pay dividends. The business had enough cash flow available to pay the current portion of both existing and proposed debt, but not enough for new fixed assets. Quick Cash Flow Worksheet-Blank Quick Cash Flow (in $000s) Company Name WI ( US GFA (U) S Net profit Plus: Depreciation, amortization expense Plus (or less): A Working investment Equals: Cash after operating cycle Plus (or less): A Gross food 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 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 Less: Accrued expenses Equals: Working investment T 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 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 (2) 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 positive amount on the line titled "Cash available for ALL debt repayment and a negative amount on the line titled "Cash available for OTHER debt repayment", as shown on the Quick Cash Flow worksheet? The business had enough cash flow available to pay only a portion of its current portion of long-term debt. The business had enough cash flow to make payments on its current debt, but no excess for payments on additional debt. The business had enough cash flow to fund expansion of fixed assets, but not enough to pay dividends. The business had enough cash flow available to pay the current portion of both existing and proposed debt, but not enough for new fixed assets. Quick Cash Flow Worksheet-Blank Quick Cash Flow (in $000s) Company Name WI ( US GFA (U) S Net profit Plus: Depreciation, amortization expense Plus (or less): A Working investment Equals: Cash after operating cycle Plus (or less): A Gross food 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 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 Less: Accrued expenses Equals: Working investment T 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 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
