Barnaby's Circus, Ltd. - Cash Flow Statement A.
Three company scenarios are listed below.
Based on the information provided in each scenario, prepare the corresponding Statement of Cash Flows in the columns to the right of each scenario. Your Statement of Cash Flows should be in good form and utilize cell referencing and formulas where applicable.
Scenario 1 :
Barnaby's Circus, Ltd., had a Cash Balance of $350,000 at year end, December 31, 2014. Barnaby's paid cash for the following items during the year ending December 31, 2015:
| 1 |
Dividends paid to stockholders |
$ 20,000 |
| 2 |
Purchased inventory from suppliers |
43,000 |
| 3 |
Purchased a new building |
125,000 |
| 4 |
Paid employee salaries |
657,000 |
| 5 |
Paid taxes to the IRS |
15,000 |
| 6 |
Purchased insurance policies to cover the circus |
120,000 |
Barnaby's Circus, Ltd., received cash for the following items during the year ending December 31, 2015:
| 1 |
Received cash from customers |
$ 880,000 |
| 2 |
Issued shares of common stock to their new shareholders |
67,000 |
| 3 |
Received interest from an investment |
3,000 |
Check Figure for Scenario 1: Ending Cash is $320,000.
Scenario 2:
Cletus' BBQ, Inc., started the year with a cash balance of 452,000 on January 1, 2015. Cletus' paid cash for the following items during the year ending December 31, 2015:
| 1 |
Paid supplier for brisket, pulled pork, and chicken |
$ 82,000 |
| 2 |
Paid a principle payment on a long-term note they owe |
9,500 |
| 3 |
Paid employees wages |
76,000 |
| 4 |
Purchased a new delivery truck |
47,500 |
| 5 |
Paid selling and administrative expenses |
23,600 |
Cletus' BBQ, Inc., received cash for the following items during the year ending December 31, 2015:
| 1 |
Sold an old BBQ smoker they replaced with a bigger one last year |
$ 2,000 |
| 2 |
Received cash from customers |
197,000 |
| 3 |
Received rent revenue from a tenant in their building |
16,000 |
| 4 |
Issued shares of stock to new shareholders |
40,000 |
Check Figure for Scenario 2: Cash Provided from Operating Activities is $31,400.
Scenario 3:
Quackpot Gardens Corp. ended the year with a cash balance of 452,000 on December 31, 2015. Quackpot paid cash for the following items during the year ending December 31, 2015:
| 1 |
Paid supplier for gardening inventory |
$ 139,000 |
| 2 |
Paid a principle payment on a long-term note they owe |
22,300 |
| 3 |
Paid employees wages |
78,000 |
| 4 |
Purchased a new huge greenhouse |
230,000 |
| 5 |
Paid interest on the long-term note |
12,000 |
| 6 |
Paid all utility bills owed |
33,900 |
| 7 |
Paid dividends to shareholders |
4,000 |
Quackpot Gardens Corp. received cash for the following items during the year ending December 31, 2015:
| 1 |
Sold an old delivery van |
$ 5,600 |
| 2 |
Received cash from customers |
354,000 |
| 3 |
Received cash from a lawsuit settlement |
20,000 |
Check Figure for Scenario 3: Cash Used for Investing Activities is ($224,400). Note that this is not a start-up company so you need to solve for Beginning Cash. It is not zero.