In today$$s business environment, financial transparency and accuracy are critical for both internal and external stakeholders. As future accountants and financial analysts, it is imperative to develop a deep understanding of financial statements, particularly the Statement of Cash Flows $($SOCF$).$ The SOCF provides valuable insights into a company's financial health by showing how cash is generated and used in operating, investing, and financing activities.

Imagine you are an intern at a major accounting firm. Your task is to assist in preparing the financial statements for a significant client. Your ability to accurately recreate and analyze the SOCF can help your team make informed decisions about investments, operational improvements, and financial strategies. By mastering these skills now, you are preparing yourself to add significant value to any organization you join.

By undertaking this assignment, you will develop practical skills in using Excel to analyze financial data and recreate the SOCF. This exercise will enhance your ability to:

Understand the cash flow dynamics of major corporations.

Apply accounting principles to real$-$world financial data.

Use Excel for financial analysis, which is a crucial skill in today$$s job market.

Detailed Requirements:

Company Selection: Ford $($F$)$

Year: $2022-2023$

Excel Work:

Data Extraction: Extract the relevant data from the provided balance sheets and income statements.

SOCF Sections: Ensure the SOCF includes the following sections:

Operating Activities: Calculate cash flows from operating activities using the indirect method, starting with net income and adjusting for changes in working capital and non$-$cash expenses.

Investing Activities: Identify cash flows from investing activities, including purchases and sales of property, plant, and equipment, and other investments.

Financing Activities: Determine cash flows from financing activities, such as issuance and repayment of debt, issuance of stock, and payment of dividends.

Formulas: Use appropriate Excel formulas to automate calculations. For example, use SUMIFS for aggregating cash flows by activity type, and IF statements for conditional adjustments.

Supporting Documentation: Write a brief explanation $(1-2$ pages$)$ detailing:

Identify the steps taken to recreate the SOCF.

Apply the Excel formulas used.

Describe any assumptions made during the process.

Submission:

Excel File: Submit the recreated SOCF in Excel format with all formulas visible and correctly implemented.

Written Explanation: Submit the explanation as a separate Word or PDF file.