In this assignment, you will be creating a cash flow statement based on the Wicked Good Cupcakes income statement and balance sheet.

Instructions:

Using the Income Statement and Balance Sheet provided in Unit 2, generate a Cash Flow Statement. You may have to make some assumptions in the process; list them in a comment column of your Cash Flow Statement.

Summarize your findings and observations.

What is your analysis of their current profit vs. cash situation?

Are they in danger of running out of cash? What are your findings? Explain.

What does their, as Warren Buffet, refers, owning earnings (free cash flow) look like?

Requirements:

Two to three-pages, excluding the Title and Reference pages.

All questions posed must be addressed completely.

APA format, including in-text citations for referenced works.

Full Year Ended 12/31/2015 87918 $12.650 Wicked Good Cupcakes Income Statement in $ 100 Full Year Ended 12/31/2016 114641 $15.813 $2.210 $2.045 $5.685 $305 $10.245 $2.405 $2.763 $2.556 $7.106 $3811 $12.806 $3.006 Units Sold Sales Cost of Goods Sold Labor Materials Overhead Delivery Total CoGS Gross Margin Expense Selling Expense General & Admin Total Expenses Operating profit (EIBT) Interest Profit before Taxes Income Taxes Net Income Dividends Retained Earnings Depreciation Net cash after divends Add back tax-adjusted interest Add back divends Cash flow from operations $875 $585 $1.460 $945 $190 $755 $272 5483 $100 $383 $575 5958 $122 $100 $1180 $1.0941 $731 $1.825 $1 181 $238 $944 $340 S604 $125 $479 $719 $1198 $153 $125 $1.475 C34 . B D E F 2 3 4 Wicked Good Cupcakes Balance Sheet Full Year Full Year Ended 12/31/2015 Ended 12/31/2016 1450 4250 1500 4050 11250 1.250 3.050 1.500 3.300 9.100 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Assets Current Assets Cash Accounts Receivable Raw Materials Finished Goods Total Current Assets Fixed Assets Land Plant and equipment Less Accumulated depreciation Net plant and equipment Total Fixed Assets Other Assets Total Assets Liabilities and Net Worth Current Liabilities Accounts Payable Notes Payable Due Contractor Accrued taxes Total current liabilities Long-term liabilities Common Stock Retained earnings Total Liabilities and net worth 2500 20800 8350 12450 14950 1250 27450 2.500 19,300 8,000 11300 13800 1.250 24 150 1120 3000 3400 1250 8770 8500 4250 5930 27450 950 2.500 500 940 4.890 8.500 4.300 6,460 24.150 1 Cash Flow Statement 2016 2 ($ Thousands) 3 Cash Flow from Operating Activities 4 Net income 5 Change in Accounts Payable 6 Change in Accounts Receivable 7 Change in Inventory 8 Other Adjustments: 9 Accrued Expenses 10 Depreciation Expense 11 Income Taxes 12 Net Cash provided by Operating Activities 13 Cash Flow from Investing Activities 14 Sale of Plant, Property and Equipment 15 Purchase of Assets 16 Sales of other assets 17 Income from short term investments (assumption from IS) 18 Net Cash used in Investing Activities 19 20 Cash Flows from Financing Activities 21 Additions to long-term debts 22 Cash dividends 23 Repurchase of Treasury Stock 24 Net cash used in Financing Activities 25 26 Increase/Decrease in cash and cash equivalents 27 Cash and Cash Equivalents at the beginning of the period 28 Cash and Cash Equivalents at the end of the period