Gears is a 5-year-old company that specializes in bike components. The company is having trouble paying for its monthly supplies and would like to perform a cash flow analysis so it can understand its financial position. Cash flow represents the money an investment produces after subtracting cash expenses from income. The statement of cash flows summarizes sources and uses of cash, indicates whether enough cash is available to carry on routine operations, and offers an analysis of all business transactions, reporting where the firm obtained its cash and how it chose to allocate the cash. The cash flow statement shows where money comes from, how the company will spend it, and when the company will require additional cash. Gears would like to project a cash flow statement for the next month.

Using the AYK2_Data.xlsx data file, complete the cash flow statement for Gears, using Excel. Be sure to create formulas so the company can simply input numbers in the future to determine cash flow.

	Gears Cash Flow Statement January
	Cash on Hand (beginning of month)	$ 18,456
	CASH RECEIVED
	Cash Sales	$ 23,894
	Credit Sales Accounts	$ 36,421
	TOTAL CASH RECEIVED
	CASH PAID OUT
	Inventory	$ 15,340
	Payroll expenses	$ 17,560
	Supplies (office & oper.)	$ 4,500
	Repairs & maintenance	$ 3,500
	Advertising	$ 2,890
	Car, delivery & travel	$ 1,500
	Accounting & legal	$ 750
	Rent	$ 4,000
	Telephone	$ 120
	Utilities	$ 430
	Insurance	$ 1,020
	Taxes (real estate, etc.)	$ 600
	Miscellaneous	$ 350
	TOTAL CASH PAID OUT
	CASH POSITION (END OF MONTH)

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