Generate Cash Flow Statement for Wicked Good Cupcakes (WGC) Overview: In this as
ID: 1170208 • Letter: G
Question
Generate Cash Flow Statement for Wicked Good Cupcakes (WGC) 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 provided Income Statement and Balance Sheet, 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. You will then write a narrative, summarize your findings and observations Consider the following as you develop the statement and summary: 1. What can you say about their profit vs cash situation? 2. Are they in danger of running out of cash? 3. What does their, as Warren Buffet refer, 'owning earnings' (free cash flow) look like? Requirements: Create a cash flow statement and include assumptions in Length: two to three-page narrative of your findings and All questions posed must be addressed completely. the comments observations All sources used must be properly cited in APA format.
Explanation / Answer
Answer )
Cas flow has been processed by use of Direct method below,
1)Profit and CASH sittuation
The Company has higher cash value than the revenue
Answer 2) No , there is no denger for running short of cash
Naswer 3) The free cash flow of the firms indicate , a good amount of money as free cash flow. The situation provide better bargain power.
2015 2016 Cash Flows from Operating Activities Net Income $483 $604 Add Expenses Not Requiring Cash: Depreciation 575 719 Amortization of Goodwill xxx xxx Other xxx xxx Other Adjustments: Add Reduction in Accounts Receivable xxx -1000 Add Increase in Wages Payable xxx 563 Add Increase in Accounts Payable xxx xxx Subtract Decrease in Accounts Payable xxx -500 Subtract Increase in Inventory xxx xxx Subtract Increase in Prepaid Expenses xxx xxx Other xxx xxx Net Cash from Operating Activities $1,058 $386 Cash Flows from Investing Activities xxx Increase in Marketable Securities xxx xxx Sale of Fixed Assets xxx xxx Purchase of New Equipment 12450 11300 Other xxx xxx Net Cash Used for Investing Activities $12,450 $11,300 Cash Flows from Financing Activities Payment of Mortgage Principal xxx xxx Transfer From/(To) Parent xxx xxx Other xxx xxx Net Cash from Financing Activities $0 $0 NET INCREASE/(DECREASE) IN CASH $13,508 $11,686 CASH, BEGINNING OF YEAR 1250 1450 CASH, END OF YEAR $14,758 $1,250Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.