Complete the following cash flow statement

CONSOLIDATE STATEMENT OF CASH FLOWS 2013

Cash From Operations

-Net profit

-Depreciation and Amortization

-Gain/Loss on Sale of Noncurrent Assets

-Change in Trade Receivable

-Change in Current Income Tax Liab

-Change in Compensation Payable.

-Change in Deferred Revenues

Net Cash From Operations

Cash From Investing

-Investments in PP&E

-Investments in Players' Registrations

-Proceeds from Sales of Players' Registrations

Net Cash from Investing

Cash From Financing

-Issuance of Common Stock

-Dividends Paid

Net Cash from Financing

Net Change in Cash

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1. Matchday Revenue (Ticket Sales): You forecast that ManU will earn 96,321 from tickets to games that are played during the 2013 season. Assume that ManU will sell some of the 2013 seats through game-day sales (30,844) and that the remainder (65,477) will be for season tickets sold in 2012 covering the 2013 season (deferred revenue on the balance sheet). Assume further that ManU will sell (for cash) 48,976 of tickets during 2013 for the 2014 season.

Impact : Matchday Revenue for 2013 is 96,321, Add Cash sale of 30,844 to the beginning balance; reduce 65,477 from beginning balance of deferred revenue; Add 48,976 to deferred revenue and add 48,976 in cash

2. Broadcasting Revenue: Assume that contracts for media coverage are signed prior to the start of the season (e.g., contracts covering the 2013 season were signed in 2012), but the cash is received both during and after the end of the season (e.g., cash for the 2013 season media rights is received in 2013 and 2014). You forecast that ManU will earn 100,544 from broadcasting games during the 2013 season, of which 59,863 will be paid in cash during 2013 and 40,681 will remain uncollected (trade receivables in the current assets section on the balance sheet) at year end 2013. In addition, ManU will collect any amounts due it as of the beginning of 2013 during 2013. Finally, during 2013, ManU will sign a contract for 102,332 for rights to the 2014 season, payment to be received in 2014 and 2015.

Impact : Broadcasting Revenue for 2013 is 100,544, add 59,863 to cash and add 40,681 to opening balance of ,Trade Receivables; Reduce the opening balance of Trade Receivable 47,163 from Trade Receivables and add 47,163 in cash. No impact for 102,332 worth contract signed for rights to the 2014 season since it is revenue of next year and no financial transaction takes place during 2013.

3. Commercial Revenue (Merchandise): Assume that Manu charges royalties on merchandise sold rather than owning the inventory themselves. Assume that ManU will receive 131,136 in cash during 2013 for merchandise sold in 2013.

Impact: Commercial Revenue (Merchandise) for 2013 is 131,136, add 131,136 in cash

4. An unusual aspect of ManUs business is that they buy and sell player registrations (contracts) for cash. Basically, the idea is analogous to property, plant and equipmentwhen they buy a player registration, they depreciate it straight line over its life and record a sale if the players contract is ultimately sold. Assume that in 2013 they buy additional player registrations of 40,150 and record amortization totaling 37,700 on all player registrations. Assume further, that player registrations have a life of 5 years and that during 2013 they sell player registrations with a historical cost of 20,500 which are three years through their life at the time of sale and receive 10,800 of cash on the sale.

Impact : Add 40,150 to the beginning cost of Players registrations, Reduce 40,150 from cash; Record Amortization of Player registrations for 37,700; Reduce 20,500 from cost of Players registrations, Reduce12,300 (i.e. 20,500 / 3) from Accumulated Amortisation, add 10,800 in Cash and record Profit on Disposal of Players in the Income Statement by 2,600 ( i.e. 10,800 - (20,500 - 12,300)

5. During 2013, ManU will buy property, plant and equipment (PP&E) for cash of 18,023 and record depreciation of 8,234. No PP&E will be sold during 2013.

Impact: Add 18,023 to beginning cost of PP&E, Reduce 18,023 from cash; Record depreciation expense of 8,234 and add 8,234 ot the beginning balance of Accumulated Depreciation in the Balance Sheet

6. Employees (including players) will earn 168,442 for services rendered in 2013. The ending balance in the compensation payable account will be 124,207. (You need to infer the amount paid to players to end up a balance of 124,207 in compensation payable.)

Impact : Record 168,442 in Employee Compensation expense in Income Statement and reduce 168,442 from cash, Record 124,207 as balance in Compensation payable in 2013 and the difference of ending and beginning balance 40,543 (i.e. 124,207 - 83,664) to be added in cash.

7. Other operating expenses for 2013 will be 41,287, all paid in cash during 2013.

Impact: Record operating expenses of 41,287 in Income Statement and reduce 41,287 from cash

8. Interest expense for 2013 will be 41,678, all paid in cash during 2013.

Impact: Record interest expense of 41,678 in Income Statement and reduce 41,678 from cash

9. Taxes are paid in the first quarter of each year on the previous years profits. New taxes payable are recorded at year-end at 25% of pre-tax income.

Impact: Reduce 7,771 from current income tax liability and reduce 7,771 from cash; Record income tax expense at 25% of Income before taxes of 33,260 in Income Statement which comes to 8,315 and add 8,315 to current income tax liability in balance sheet

10. The ending cash balance will be 114,066. Any excess cash is paid out as a dividend and any shortfall is made up by issuing stock.

Impact: The balance in cash after adding and subtracting the above amounts would be 126,044 whereas ending cash balance should be 114,066. The difference amount of 11,978 being excess cash to be recorded as Dividend paid in Income Statement and cash balance to be recorded as 114,066. The retained profit of 12,967 to be added to the beginning deficit balance of -12,671 leaving a balance of 296.

CONSOLIDATED INCOME STATEMENT 2012 2013 5117.611 131.136 Commercial revenue 103,991 100,544 Broadcasting revenue atchday revenue 987 18 96.321 328,001 320,320 Total Revenue -161.688 -168 442 Employee compensation expense -7478 -8.234 Depreciation expense Amortisation of players' registrations -38262 37700 -41.963 41.287 Other Operating Expenses 249,391 Total Operating Expenses -255,663 9.691 2.500 Profit on Disposal of Players 80,620 74,938 Operating Profit Interest expense -49,536 41.678 31,084 33,260 Income before taxes Income tax expens -7771 -8315 Net Profit 23,313 24,945 Dividend paid 10.098 11.978 13,215 E12.967 Retained Profit CONSOLIDATED BALANCE SHEET 2012. 2013 Assets Property plant and equipment Cos 325.894 E343,917 -78,028 -86,262 Accumulated depreciation Net book value 247.866 257.655 Players' registrations (cos 306.817 326.467 -194.418 -219.818 Accumulated amortisation 112399 106,649 Net book value 465,650 465.650 Other noncurrent assets Non-current assets 825,915 829,954 Trade receivables 47 163 40,681 Cash 74,070 114,066 121,233 154,747 Current assets 947,148 984,701 Total assets Liabilities and equity Current income taxliabilitl 7771 8315 83,664 124207 Compensation payable 128.535 112.034 Deferred revenu Other current liabilities 9,413 9,413 229,383 253,969 Total current liabilities 482.668 482.668 Non-current liabilities 247.768 247.768 Share capital -12.671 296 Retained earnings (deficit) 235,097 248,064 Total equity 947.148 Total liabilities and equity E984,701