Unit 5 Assignment 5.2: Cash Flow Statement Due Date: The evening prior to the start of class meeting 6 by 11:59 PM EST. Total Points: 100 Overview: 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? . . Annual income Statement ($ Thousands, except per share) Sales Cost of Goods Sold $179.24 $95.71 $164.28 $91.99 Gross Profit Selling, General, & Administrative Exp. $83.53 $56.36 $72.29 $50.65 Operating Income Before Deprec. Depreciation,Depletion,&Amortization $27.17 $5.85 $21.64 $5.89 Operating Profit $21.33 $15.74 Interest Expense Non-Operating Income/Expense Specialitems $0.88 $0.93 $0.00 $0.56 $0.31 $0.00 Pretax Income TotalIncome Taxes $21.38 $7.23 $15.49 $5.60 Income Before Extraordinary Items & Discontinued Operations $14.15 $9.90 Savings Due to Common Stock Equiv. $0.00 $0.00 Adjusted Net Income $14.15 $9.90 $0.26 EPS Basic from Operations EPS Diluted from Operations $0.19 $0.19 $0.25 Dividends Per Share $0.02 $0.00 Com Shares for Basic EPS Com Shares for Diluted EPS $5.06 $5.21 $5.12 $5.27 ANNUAL BALANCE SHEET ($ Thousands) 31-Dec-15 31-Dec-16 ASSETS Cash & Short-Term Investments Net Receivables Inventories Prepaid Expenses Other Current Assets $17.11 $1.62 $42.72 $0.00 $3.38 $25.05 $1.84 $39.68 $0.00 $2.93 Total Current Assets $64.84 $69.49 Gross Plant, Property & Equipment Accumulated Depreciation $63.75 $36.16 $58.28 $32.61 Net Plant, Property & Equipment Intangibles Other Assets $27.58 $5.88 $6.16 $25.67 $6.01 $5.81 TOTAL ASSETS $104.47 $106.98 LIABILITIES Long Term Debt Due In One Year Accounts Payable Taxes Payable Accrued Expenses Other Current Liabilities $0.00 $10.59 $1.87 $7.19 $1.88 $0.00 $11.91 $2.01 $6.91 $1.85 Total Current Liabilities $21.54 $22.67 Long Term Debt Deferred Taxes Other Liabilities $6.95 $1.16 $3.04 $19.79 $2.32 $2.43 TOTAL LIABILITIES $32.68 $47.21 EQUITY Common Stock Capital Surplus Retained Earnings Less: Treasury Stock $0.07 $27.25 $73.89 $29.42 $0.06 $24.31 $61.10 $25.71 TOTAL EQUITY $71.79 $59.77 TOTAL LIABILITIES & EQUITY $104.47 $106.98 Common Shares Outstanding $5.14 $5.05 31-Dec-15 31-Dec-16 cash flow statement: Cash flow from operating activities Net income Change in Accouunts payable Change in Accounts Receivable Change in Inventory Other Adjustmets Accured Expenses Depreciation Expense Income Taxes Net Cash provided by Operating Activities Sal of Plant Property and Equptment Purchase of Assets Sales of other assets Income from short term investments Net Cash used in investing activities Cash flows from Financing Activities Additions to long-term debt Cash dividends Repurchase of treasury stock net cash used in financing activities increase/decrease in cash and cash equivilants cash and cash equivilants at the beginning of this period Cash and cash equivalents at the end of the period Unit 5 Assignment 5.2: Cash Flow Statement Due Date: The evening prior to the start of class meeting 6 by 11:59 PM EST. Total Points: 100 Overview: In this assignment, you will be creating a cash flow statement based on the Wicked Good Cupcakes income statement and balance sheet. Instructions: . . Using the Income Statement and Balance Sheet provided in Unit 2, generate a Cash Flow Statement. You may have to make some assumptions in the process; list them in a comment column of your Cash Flow Statement. Summarize your findings and observations. What is your analysis of their current profit vs. cash situation? Are they in danger of running out of cash? What are your findings? Explain. What does their, as Warren Buffet, refers, owning earnings' (free cash flow) look like? . . Annual income Statement ($ Thousands, except per share) Sales Cost of Goods Sold $179.24 $95.71 $164.28 $91.99 Gross Profit Selling, General, & Administrative Exp. $83.53 $56.36 $72.29 $50.65 Operating Income Before Deprec. Depreciation,Depletion,&Amortization $27.17 $5.85 $21.64 $5.89 Operating Profit $21.33 $15.74 Interest Expense Non-Operating Income/Expense Specialitems $0.88 $0.93 $0.00 $0.56 $0.31 $0.00 Pretax Income TotalIncome Taxes $21.38 $7.23 $15.49 $5.60 Income Before Extraordinary Items & Discontinued Operations $14.15 $9.90 Savings Due to Common Stock Equiv. $0.00 $0.00 Adjusted Net Income $14.15 $9.90 $0.26 EPS Basic from Operations EPS Diluted from Operations $0.19 $0.19 $0.25 Dividends Per Share $0.02 $0.00 Com Shares for Basic EPS Com Shares for Diluted EPS $5.06 $5.21 $5.12 $5.27 ANNUAL BALANCE SHEET ($ Thousands) 31-Dec-15 31-Dec-16 ASSETS Cash & Short-Term Investments Net Receivables Inventories Prepaid Expenses Other Current Assets $17.11 $1.62 $42.72 $0.00 $3.38 $25.05 $1.84 $39.68 $0.00 $2.93 Total Current Assets $64.84 $69.49 Gross Plant, Property & Equipment Accumulated Depreciation $63.75 $36.16 $58.28 $32.61 Net Plant, Property & Equipment Intangibles Other Assets $27.58 $5.88 $6.16 $25.67 $6.01 $5.81 TOTAL ASSETS $104.47 $106.98 LIABILITIES Long Term Debt Due In One Year Accounts Payable Taxes Payable Accrued Expenses Other Current Liabilities $0.00 $10.59 $1.87 $7.19 $1.88 $0.00 $11.91 $2.01 $6.91 $1.85 Total Current Liabilities $21.54 $22.67 Long Term Debt Deferred Taxes Other Liabilities $6.95 $1.16 $3.04 $19.79 $2.32 $2.43 TOTAL LIABILITIES $32.68 $47.21 EQUITY Common Stock Capital Surplus Retained Earnings Less: Treasury Stock $0.07 $27.25 $73.89 $29.42 $0.06 $24.31 $61.10 $25.71 TOTAL EQUITY $71.79 $59.77 TOTAL LIABILITIES & EQUITY $104.47 $106.98 Common Shares Outstanding $5.14 $5.05 31-Dec-15 31-Dec-16 cash flow statement: Cash flow from operating activities Net income Change in Accouunts payable Change in Accounts Receivable Change in Inventory Other Adjustmets Accured Expenses Depreciation Expense Income Taxes Net Cash provided by Operating Activities Sal of Plant Property and Equptment Purchase of Assets Sales of other assets Income from short term investments Net Cash used in investing activities Cash flows from Financing Activities Additions to long-term debt Cash dividends Repurchase of treasury stock net cash used in financing activities increase/decrease in cash and cash equivilants cash and cash equivilants at the beginning of this period Cash and cash equivalents at the end of the period