Prior to beginning work on this assignment, read Case 6-2 and Case 17-2 and review the Cash Flow Student Input Sheet.xlsx. Your cash flow statement should be completed using the Cash Flow Student Input Sheet. Several book numbers have been changed, so use the column on the Cash Flow Student Input Sheet that corresponds to your class start date.

Complete the Cash Flow Student Input Sheet, and then write a five- to seven-page paper completing Case 17-2 and Case 6-2. Submit both the final paper cash flow input sheet and the final paper using the instructions provided below.

Your final paper should have the following paragraph headings and address the corresponding directives:

Case 17-2

• Statement of Cash Flows for the year ended December 31, 2017
  • Prepare a statement of cash flows for Lucky Lady Inc. using the income statement for the year. ended December 31, 2017, as well as the balance sheets as of December 31, 2017 and December 31, 2016.
• Borrowing and Repayment
  • Show separately any borrowing or repayment as a financing inflow or outflow.
  • Explain the changes to each asset and each liability account that affected Lucky Ladys cash flows during 2017.

Case 6-2

• Collateral
  • Suggest what type and amount of collateral should be required.
• Interest Rate
  • Determine if a higher interest rate be charged with rationale.
• Payment Schedule
  • Propose what changes should be made to the payment schedule.
• Minimum Net Worth, Working Capital, and Interest
  • Recommend the new minimum net worth, working capital, and interest coverage limits that lenders should set.
• Resume Payment of Dividend
  • Advise Prudential and First Florida as to a course of action if the company were to ask permission to resume payment of its $0.12 per share dividend, which was suspended in 2016.

CHANGE THE FOLLOWING NUMBERS BASED UPON YOUR COURSE START DATE Jan-Feb Net Income -117586 Ending Cash Balance 247894 Ending Retained Earnings -151626 Depreciation 21354 CASH FLOW STATEMENT Balance Sheets Net income December 31, December 31, Adjustments to reconcile net income to net ($ in thousands) 2016 2017 cash provided by operating activities Assets Depreciation Cash $ 631,975 $ 247,894 Gross accounts receivable Gross accounts receivable $ 2,178 $ 35,249 Less: Allowance for doubtful accounts Less: Allowance for doubtful accounts $ (1,531) $ (4,733) Prepaid expenses Prepaid expenses $ 1,219 $ 11,755 Inventories Inventories $ 154 $ 12,662 Accounts payable Gross property, plant, and equipment $ 471,506 $ 953,796 Accrued salaries and wages Less: Accumulated depreciation $ (21,796) $ (86,512) Accrued interest on long-term debt Pre-opening expenses $ 10,677 $ Other accrued liabilities Other operating assets $ 21,116 $ 26,601 Construction payables Total assets $ 1,115,498 $ 1,196,712 Current maturities, long-term debt Liabilities and Stockholders' Equity Net cash provided by operating activities Accounts payable $ 4,322 $ 14,181 Investing activities Accrued salaries and wages $ 945 $ 8,194 Gross property, plant, and equipment Accrued interest on long-term debt $ 9,429 $ 9,472 Less: Accumulated depreciation Other accrued liabilities $ 9,744 $ 33,502 Pre-opening expenses Construction payables $ 32,296 $ 96,844 Other operating assets Current maturities, long-term debt $ $ 1,573 Net cash used for investing activities Total current liabilities $ 56,736 $ 163,766 Financing activities Deferred revenues $ $ 10,784 Deferred revenues Long-term debt $ 473,000 $ 481,427 Long-term debt Total liabilities $ 529,736 $ 655,977 Common stock Common stock $ 485 $ 506 Capital in excess of par value Capital in excess of par value S 589,827 $ 662,365 Net Cash provided by Financing Activities Common stock in treasury $ 29,490 $ 29,490 Net Cash Flow Retained earnings (deficit) $ (34,040) $ (151,626) Beginning Cash Balance Total stockholders' equity S 585,762 $ 540,735 Ending Cash Balance Total liabilities and equity $ 1,115,498 $ 1,196,712