chapter 3 excel

Excel Online Structured Activity: Statement of cash flows You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $700,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary. Statement of cash flows \begin{tabular}{lr} \hline Cash at the Beginning of Year & $100,000.00 \\ \hline Change in Net Operating Working Capital Except Cash & $0.00 \\ \hline Vet Income & $5,000,000.00 \\ \hline Common Dividends & $700,000.00 \\ \hline Machinery Equipment Purchases & $5,400,000.00 \\ \hline Depreciation Expense & $450,000.00 \\ \hline Long-Term Debt & $1,000,000.00 \\ \hline interest Rate on Long-Term Debt & 5.00% \end{tabular} Statement of Cash Flows 1. Operating Activities Net income Depreciation expense Change in net operating working capital except cash Net cash provided by (used in) operations Formulas 14 15 16 17 18 19 11. Long-Torm Investing Activities: 20 Additions to property, plant and equipment 21 Net cash used in investing activities 22 23 tII. Financing Activities 24 Increase in long-term debt Payment of common dividends Net cash provided by financing activities 25 26 27 28 IV. Summary Sheet 1 Workbook Statistics