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. Be sure to read the criteria, by which your assignment will be evaluated, before you write, and again after you write. CRITERIA Cash Flow Statement with All Assumptions Made Noted on the Statement Deficient (0-19 Points) Does not provide the cash flow statement, or the overview is missing key details. Current Profit vs. Cash Analysis (0-12 Points) Analysis is inadequate or missing. Running out of Cash Analysis Exemplary Proficient (28 - 30 Points) (20-27 Points) The cash flow The cash flow statement is clearly statement is presented, including presented, though all key details. key details may not be clearly or completely presented. (18-20 Points) (13 - 17 Points) The current profit vs. The current profit vs. cash is clearly cash is presented, presented, including though key details analysis. may not be clearly or completely presented. Analysis of the danger Analysis of the of running out of cash danger of running is clearly presented out of cash is presented, though key details may not be clearly or completely presented. Analysis is clearly Analysis is presented, including presented, though all key details key details may not be clearly or completely presented. (9 - 10 Points) (7 - 8 Points) Writing and format are Few errors that do clear, professional, not impede APA compliant, and professional error-free. presentation Analysis is inadequate or missing. Free Cash Flow Analysis Analysis is inadequate or missing. Clear and Professional Writing and APA Format (0 - 6 Points) Errors impede professional presentation; guidelines not followed. Cash Flow Statement 2016 ($ Thousands) Cash Flow from Operating Activities Net income Change in Accounts Payable Change in Accounts Receivable Change in Inventory Other Adjustments Accrued Expenses Depreciation Expense Income Taxes Net Cash provided by Operating Activities Cash Flow from Investing Activities Sale of Plant, Property and Equipment Purchase of Assets Sales of other assets Income from short term investments (assumption from IS) Net Cash used in Investing Activities Cash Flows from Financing Activities Additions to long-term debts Cash dividends Repurchase of Treasury Stock Net cash used in Financing Activities Increase/Decrease in cash and cash equivalents Cash and Cash Equivalents at the beginning of the period Cash and Cash Equivalents at the end of the period Wicked Good Cupcakes Income Statement in $ 100 Full Year Ended 12/31/2015 87918 $12,650 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 $381 $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 $483 $100 $383 $575 $958 $122 $100 $1,180 $1,094 $731 $1,825 $1,181 $238 $944 $340 $6041 $125 $479 $719 $1,198 $153 $125 $1.475 Wicked Good Cupcakes Balance Sheet Full Year Full Year Ended 12/31/2015 Ended 12/31/2016 1450 4250 1500 40501 11250 1.250 3,050 1.500 3.3001 9.100 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 eamings 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 1501 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. Be sure to read the criteria, by which your assignment will be evaluated, before you write, and again after you write. CRITERIA Cash Flow Statement with All Assumptions Made Noted on the Statement Deficient (0-19 Points) Does not provide the cash flow statement, or the overview is missing key details. Current Profit vs. Cash Analysis (0-12 Points) Analysis is inadequate or missing. Running out of Cash Analysis Exemplary Proficient (28 - 30 Points) (20-27 Points) The cash flow The cash flow statement is clearly statement is presented, including presented, though all key details. key details may not be clearly or completely presented. (18-20 Points) (13 - 17 Points) The current profit vs. The current profit vs. cash is clearly cash is presented, presented, including though key details analysis. may not be clearly or completely presented. Analysis of the danger Analysis of the of running out of cash danger of running is clearly presented out of cash is presented, though key details may not be clearly or completely presented. Analysis is clearly Analysis is presented, including presented, though all key details key details may not be clearly or completely presented. (9 - 10 Points) (7 - 8 Points) Writing and format are Few errors that do clear, professional, not impede APA compliant, and professional error-free. presentation Analysis is inadequate or missing. Free Cash Flow Analysis Analysis is inadequate or missing. Clear and Professional Writing and APA Format (0 - 6 Points) Errors impede professional presentation; guidelines not followed. Cash Flow Statement 2016 ($ Thousands) Cash Flow from Operating Activities Net income Change in Accounts Payable Change in Accounts Receivable Change in Inventory Other Adjustments Accrued Expenses Depreciation Expense Income Taxes Net Cash provided by Operating Activities Cash Flow from Investing Activities Sale of Plant, Property and Equipment Purchase of Assets Sales of other assets Income from short term investments (assumption from IS) Net Cash used in Investing Activities Cash Flows from Financing Activities Additions to long-term debts Cash dividends Repurchase of Treasury Stock Net cash used in Financing Activities Increase/Decrease in cash and cash equivalents Cash and Cash Equivalents at the beginning of the period Cash and Cash Equivalents at the end of the period Wicked Good Cupcakes Income Statement in $ 100 Full Year Ended 12/31/2015 87918 $12,650 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 $381 $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 $483 $100 $383 $575 $958 $122 $100 $1,180 $1,094 $731 $1,825 $1,181 $238 $944 $340 $6041 $125 $479 $719 $1,198 $153 $125 $1.475 Wicked Good Cupcakes Balance Sheet Full Year Full Year Ended 12/31/2015 Ended 12/31/2016 1450 4250 1500 40501 11250 1.250 3,050 1.500 3.3001 9.100 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 eamings 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 1501