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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
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 $800,000 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 leamed 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 finanding done by the firm was to issue long-term debt of $1 million at a 7% 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 Open spreadsheet 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 5100.000 00 Crea!, t th" B"ginning of Ymer Change in Net Operating Norking Capital Except Cas Net Income $5.000,000.00 3800.000.00 S5.400.000.00 $450.000.00 $1.000.000.00 Check My Work Long Term Debt Interest Rate on Long Term Debt Reset Problem Statement ot Ca Nat income Depreciation expense Change in net operating working cepital axcept cash Net csh provided by (usd in) operstions Long-Term Investing Activities Additions to property, plant and equipment Net cash uscd in investing activitics Incroaso in long-term dabt Summery 5100,000.00 ash at end of year
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