The assignment requires an analysis of specific financial data of Bob Smith Inc. Bob is an existing bank customer.

see attached spread sheet for Accounts payable and accruals and question only the highlighted portion needs answered.

The assignment requires an analysis of specific financial data of Bob Smith Inc. Bob is an existing bank customer. When the loan to Bob was originally made in 2013 the bank required Bob to increase the YE 2014 cash balance to at least $70,000. The Cash Flow Statement and Balance Sheet show an actual YE 2014 cash balance of less than $34,000. The Team Assignment requires participation in a team effort to complete the (partially prepared) 2014 Cash Flow Statement. Answer each question and forward a paragraph or two: This change in Accounts payable and accruals represents That Bob did? This had a positiveegative impact on overall cash flows? This suggests Bob did what ...collected faster/slower? To continue this positive trend Bob should do what ...and how will it be done-or? To improve this negative trend Bob should do what ...and how will it be done? RC 5-15 MT 480 Case Study Bob Smith Loan Review Data for Teams Comparative Balance Sheets and Cash Flow Statement Worksheet ASSETS Cash and marketable securities Accounts receivable Inventory Other current assets Total current assets Gross Plant and equipment Less: Accumulated depreciation $ $ $ $ $ $ $ 2014 33,411 260,205 423,819 41,251 758,686 1,931,719 (419,044) $ $ $ $ $ $ $ 2013 16,566 318,768 352,740 29,912 717,986 1,609,898 (206,678) Net plant and equipment Goodwill and other assets Total Assets $ $ $ 1,512,675 382,145 2,653,506 $ $ $ 1,403,220 412,565 2,533,771 LIABILITIES AND EQUITY Accounts payable and accruals $ 378,236 $ 332,004 Notes payable Accrued income taxes Total current liabilities $ $ $ $ 14,487 21,125 413,848 $ $ $ $ 7,862 16,815 356,681 Long-term debt Total liabilities Preferred stock Common stock (10,000 shares) Additional paid in capital Retained earnings Less: Treasury stock Total common equity Total Liabilities and Equity $ $ $ $ $ $ $ $ $ 679,981 1,093,829 10,000 975,465 587,546 (13,334) 1,559,677 2,653,506 $ $ $ $ $ $ $ $ $ 793,515 1,150,196 10,000 975,465 398,110 1,383,575 2,533,771 In addition, it was reported that the company had a net income of $3,155,848 and depreciation expenses were equal to $212,366 during 2014. Net Income $3,155,848 Depreciation $212,366 Dividends Paid -$2,966,412 ta for Teams ent Worksheet The bank told Bob to increase cash to $70,000 from 2013 to 2014. But cash increased from $16,566 in 2013 to just $33,411 in 2014, well short of $70,000, ... why... Cash Up or Down $ 16,845 $ 58,563 $ (71,079) $ (11,339) $ (40,700) (321,821) 212,366 $ $ (109,455) 30,420 (119,735) $ 46,232 EXPLAIN $ $ $ 6,625 4,310 57,167 $ (113,534) (56,367) 0 0 189,436 (13,334) 176,102 119,735 depreciation expenses were Explain how the highlighted account impacted cash flow from one year to the next. The account either added or reduced the cash balance from one year to the next. I.e., the accounts were either a Source or Use of cash