Excel Workbook Assignment
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. You must link your spreadsheet cells to get full credit.
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
|
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
|
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
|
B. Two company scenarios are listed below. Based on the information provided in each scenario, prepare the corresponding Cash T-Account in the columns to the right of each scenario. Your T-Account should be in good form and utilize cell referencing and formulas where applicable.
Scenario 1: Hannah's Hot Dogs, Ltd., engaged in the following cash transactions when she started up the business this year. Record each transaction in the Cash T-Account Provided in Columns H and I of this worksheet. Be sure to label each item in the T-Account with its corresponding number. The T-Account is drawn for you in this first scenario.
|
1
|
Received cash from investors
|
$30,000
|
|
2
|
Paid cash for hot dog cart
|
4,900
|
|
3
|
Paid cash for hot dog, buns, and condiment inventory
|
2,000
|
|
4
|
Paid cash for cart license
|
1,200
|
|
5
|
Received cash from customers
|
6,700
|
|
6
|
Paid cash for insurance
|
3,000
|
|
7
|
Paid cash to accountant
|
1,000
|
|
8
|
Paid cash for taxes
|
450
|
Scenario 2: Harry's Hamburgers, Inc., engaged in the following cash transactions during the year. Harry had a cash balance of $45,000 at the beginning of the year. Record each transaction in a Cash T-Account in Columns H and I of this worksheet. Be sure to label each item in the T-Account with its corresponding number or label. Don't forget your beginning balance!
|
1
|
Made principal payment on long-term note
|
$ 8,700
|
|
2
|
Received rent from other hamburger wagon franchisees
|
13,400
|
|
3
|
Received cash from customers
|
72,000
|
|
4
|
Got a new loan from the bank
|
10,000
|
|
5
|
Paid employee wages
|
28,000
|
|
6
|
Paid for liability insurance policy
|
4,000
|
|
7
|
Paid all other expenses
|
22,300
|
C. Two company scenarios are listed below. Based on the information provided in each scenario, calculate the corresponding (a) Cash Coverage of Growth Ratio and the (b) Free Cash Flows in the columns to the right of each scenario. Your Ratios and Calculations should include the written definition, be labeled clearly, be presented in good form, and utilize cell referencing and formulas where applicable.
Scenario 1: A Statement of Cash Flows is presented below for Heavy Metal Corporation. Calculate the Cash Coverage of Growth Ratio and the Free Cash Flows for this company.
|
Heavy Metal Company Statement of Cash Flows For the year ending December 31, 2015
|
|
Cash Flows from Operating Activities:
|
|
|
Cash received from customers
|
$1,288,436
|
|
Cash paid to suppliers
|
(556,299)
|
|
Cash paid for selling and administrative expenses
|
(276,600)
|
|
Cash paid for interest
|
(3,500)
|
|
Cash paid for taxes
|
(25,460)
|
|
Net Cash Flows Provided by Operating Activities
|
426,577
|
|
Cash Flows from Investing Activities:
|
|
|
Proceeds from sale of long-term investment
|
75,000
|
|
Purchase of heavy metal delivery truck
|
(84,900)
|
|
Purchase of new heavy metal storage warehouse
|
(282,000)
|
|
Net Cash Flows Used for Investing Activities
|
(291,900)
|
|
Cash Flows from Financing Activities:
|
|
|
Proceeds from new note payable
|
300,000
|
|
Payment of principal on bond payable
|
(50,000)
|
|
Proceeds from issue of common stock shares
|
41,000
|
|
Net Cash Flows Provided by Financing Activities
|
291,000
|
|
Net Cash Provided during year
|
425,677
|
|
Beginning Cash at January 1, 2015
|
1,853,908
|
|
Ending Cash at December 31, 2015
|
$ 2,279,585
|
Scenario 2: A Statement of Cash Flows is presented below for Good Grub Grocery. Calculate the Cash Coverage of Growth Ratio and the Free Cash Flows for this company.
|
Cash Flows from Operating Activities:
|
|
|
Cash received from customers
|
$ 967,000
|
|
Cash paid to suppliers
|
(644,000)
|
|
Cash paid for selling and administrative expenses
|
(227,000)
|
|
Cash paid for interest
|
(4,980)
|
|
Cash paid for taxes
|
(16,675)
|
|
Net Cash Flows Provided by Operating Activities
|
74,345
|
|
Cash Flows from Investing Activities:
|
|
|
Proceeds from sale of delivery truck
|
4,500
|
|
Purchase of refrigerated display cases
|
(13,445)
|
|
Purchase of new forklifts
|
(12,980)
|
|
Net Cash Flows Used for Investing Activities
|
(21,925)
|
|
Cash Flows from Financing Activities:
|
|
|
Payment of principal on note payable
|
(22,000)
|
|
Proceeds from issue of common stock shares
|
8,900
|
|
Net Cash Flows Used For Financing Activities
|
(13,100)
|
|
Net Cash Provided during year
|
39,320
|
|
Beginning Cash at January 1, 2015
|
387,224
|
|
Ending Cash at December 31, 2015
|
$ 426,544
|
Attachment:- Assignment.rar