You have been provided with a 2020 income statement and 2019 and 2020 balance sheets for Wenwen, Inc.

In addition:

• In 2020, Wenwen paid $5,000 of preferred stock dividends
• In 2020, Wenwen also paid common stock dividends

Your assignment is to:

• Prepare a 2020 cash flow statement for Wenwen, Inc. in proper GAAP format.
• Prepare a free cash flow calculation for 2020 and reconcile the free cash flow total to the total change in cash from the GAAP income statement.

Deliverable: Provide the requested information in an excel file. Add explanations and comments to the spreadsheet as needed.

Cash Flow Homework Calculate GAAP Cash Flow Wenwen, Inc. Income Statement 2020 250,000 160,000 90,000 Revenue Cost of Revenue Gross Profit R&D Sales & Marketing G&A Total Operating Expenses 15,000 34,000 9,000 58,000 EBIT Interest Expense EBT Taxes Net Income 32,000 7.000 25,000 5,000 20,000 Cash Short-term investment securities Accounts receivable Inventory Prepaid Rent Prepaid Insurance Total current assets Wenwen, Inc. Balance Sheet 2019 8,100 2,200 18,300 35,400 0 4,500 68,500 2020 4,400 1,300 27,100 31.200 2,000 7.300 73,300 Accounts payable Taxes payable Short-term debt Interest Payable Accrued wages Deferred revenue -short-term Total current liabilities Wenwen, Inc. Balance Sheet 2019 26,600 6,700 8,200 1,400 2,300 3,700 48.900 2020 32,700 6,200 7,900 1,600 1,800 3,600 53,800 Deferred revenue - long-term Long-term debt Total Liabilities 11,100 19,500 79,500 9,700 17.100 80,600 Gross plant and equipment Accumulated depreciation Net plant and equipment Gross intangible assets Accumulated amortization Net intangible assets Other long term operating assets Long term investment securities Total Assets 46,600 -7,700 38.900 8,800 - 1,000 7,800 2,900 3,100 121,200 53,400 -12,500 40,900 8.800 -2,700 6,100 3,300 1,400 125.000 Common Stock & APIC Preferred Stock Treasury stock Retained earnings Total Equity Total Liabilities & equity 5,200 8,100 -11,100 39,500 41,700 121,200 5,700 8,100 -13,400 44,000 44,400 125,000