Attached you will find an excel format. Please answer the questions below with an explanation.
Cash Flow Statement
for Year ended March 31, 2007
Net Income 2,50,000
Gain on sale of restaurant -1,20,000
Loss on sale of equipment 5,000
Changes in W/C Accounts
Related to Operations
Decreased A/R 12,000
Decreased Inventory 5,000
Increased Prepaid Expenses -10,000
Decreased A/P -6,000
Increased Accrued Expenses Payable 2,000
Decreased Income Taxes Payable -18,000
Decreased Advance Deposits -16,000
Cash from (used in) operations 2,34,000
Purchase of equipment -2,00,000
Sale of equipment 1,50,000
Sale of restaurant 3,00,000
Investment in restaurants -4,60,000
Cash from (used in) investing activities -2,10,000
Sold Bonds 3,60,000
Drew Upon Line of Credit 1,000
Bought Treasury Stock -4,20,000
Cash from (used in) financing activities -57,000
Increase (Decrease) in cash -33,000
Cash and cash equivalents March 31, 2006 70,000
Cash and cash equivalents March 31, 2007 37,000
What is the beginning cash balance of this restaurant?
Attached you will find an excel format.
1. What is the beginning cash balance of this restaurant? 70,000
2. How much is this restaurant obtaining from each of its
internal sources of cash?
Source #1 Net Income 250000
Source #2 Depreciation 90000
Source #3 Amortization 40000
Total internal sources of cash 380000
3. Is this restaurant growing? How do you know?
Yes Resturant is growing as its net ...
Solution helps in Cash Flow Analysis