Module 2 Assignment (Individual Assignment)
In this assignment you will have the opportunity to demonstrate your ability to
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Construct an indirect cash flow statement by deconstructing the other financial statements
Instructions
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Using the financial statements and additional information below, construct an indirect cash flow statement in Excel for year 4. As long as you are following general cash flow formatting rules (e.g. operating section, investing section, financing section), you can format it as you see fit. Remember that these reports should be clean, easy to read and understand, and useful for decision-making purposes.
Additional information:
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The changes in Accumulated Other Comprehensive Income relate to revaluations of Investments in Securities to market value. The remaining changes in Investments in Securities result from purchases and sales. Assume that the sales occurred at no gain or loss.
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No sales of property, plant, and equipment took place during the three-year period.
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The changes in Other Noncurrent Assets are investing activities.
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The changes in Employee Retirement Benefits relate to provisions made for retirement benefits net of payments made to retired employees, both of which the statement of cash flows classifies as operating activities.
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The changes in Other Noncurrent Liabilities are financing activities.
Exhibit 3.27 Nojiri Pharmaceutical Industries Income Statements (amounts in millions) (Problem 3.28) Year Ended March 31: Year 4 Year 3 Year 2 Sales Cost of goods sold Selling and administrative expenses Interest expense Income tax expense Net Income 41,352 (27,667) (13,396) (338) (1,823) (1,872) * 41,926 (27,850) (15,243) (364) 443 (1,088) # 44,226 (28,966) (15,283) (368) 34 (357) * 1359 Exhibit 3.26 Nojiri Pharmaceutical Industries Balance Sheets (amounts in millions) (Problem 3.28) March 31: Year 4 Year 3 Year 2 Year 1 6,233 19,003 7,693 1,355 432 34,716 3,309 71,792 (40,689) 236 4,551 73,915 * 4,569 17,828 7,948 1,192 325 31,862 2,356 71,510 (38,912) 1,608 3,904 \ 72,328 4,513 19,703 8,706 948 640 34,510 3,204 71,326 (36,854) 1,481 3,312 76,979 5,008 19,457 8,607 824 634 34,530 4,997 71,018 (35,797) 494 3,463 78,705 ASSETS Cash Accounts and notes receivable-Trade Inventories Deferred income taxes Prepayments Total Current Assets Investments Property, plant and equipment, at cost Less accumulated depreciation Deferred income taxes Other assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts and notes payable-Trade Notes payable to banks Current portion of long-term debt Other current liabilities Total Current Liabilities Long-term debt Deferred income taxes Employee retirement benefits Other noncurrent liabilities Total Liabilities Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock Total Shareholders' Equity Total Liabilities and Shareholders' Equity 10,851 9,779 10,804 10,023 * 9,629 10,328 200 6,170 26,327 7,889 9,779 30,409 6,487 7,565 28,392 8,147 10,087 10,360 100 7,200 27,747 8,140 3,361 809 175 * 40,232 10,758 15,012 9,179 (342) (924) 33,683 73,915 905 174 35,295 * 10,758 15,012 11,838 (490) (85) 37,033 # 72,328 1,087 200 38,183 10,758 15,012 13,697 (659) (12) 38,796 \ 76,979 1,166 216 37,921 10,758 15,012 15,014 40,784 78,705 Exhibit 3.27 Nojiri Pharmaceutical Industries Income Statements (amounts in millions) (Problem 3.28) Year Ended March 31: Year 4 Year 3 Year 2 Sales Cost of goods sold Selling and administrative expenses Interest expense Income tax expense Net Income 41,352 (27,667) (13,396) (338) (1,823) (1,872) * 41,926 (27,850) (15,243) (364) 443 (1,088) # 44,226 (28,966) (15,283) (368) 34 (357) * 1359 Exhibit 3.26 Nojiri Pharmaceutical Industries Balance Sheets (amounts in millions) (Problem 3.28) March 31: Year 4 Year 3 Year 2 Year 1 6,233 19,003 7,693 1,355 432 34,716 3,309 71,792 (40,689) 236 4,551 73,915 * 4,569 17,828 7,948 1,192 325 31,862 2,356 71,510 (38,912) 1,608 3,904 \ 72,328 4,513 19,703 8,706 948 640 34,510 3,204 71,326 (36,854) 1,481 3,312 76,979 5,008 19,457 8,607 824 634 34,530 4,997 71,018 (35,797) 494 3,463 78,705 ASSETS Cash Accounts and notes receivable-Trade Inventories Deferred income taxes Prepayments Total Current Assets Investments Property, plant and equipment, at cost Less accumulated depreciation Deferred income taxes Other assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts and notes payable-Trade Notes payable to banks Current portion of long-term debt Other current liabilities Total Current Liabilities Long-term debt Deferred income taxes Employee retirement benefits Other noncurrent liabilities Total Liabilities Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock Total Shareholders' Equity Total Liabilities and Shareholders' Equity 10,851 9,779 10,804 10,023 * 9,629 10,328 200 6,170 26,327 7,889 9,779 30,409 6,487 7,565 28,392 8,147 10,087 10,360 100 7,200 27,747 8,140 3,361 809 175 * 40,232 10,758 15,012 9,179 (342) (924) 33,683 73,915 905 174 35,295 * 10,758 15,012 11,838 (490) (85) 37,033 # 72,328 1,087 200 38,183 10,758 15,012 13,697 (659) (12) 38,796 \ 76,979 1,166 216 37,921 10,758 15,012 15,014 40,784 78,705
