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# Calculating the Cash Flows & Abbreviated Financial Statements

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1. (Answer using Excel): Calculating Cash Flows, Consider the following abbreviated financial statements for:

WESTON ENTERPRISES
2011 and 2012 Partial Balance Sheets
ASSETS
2011
Current assets \$936
Net fixed assets \$4,176

2012
Current assets \$1,015
Net fixed assets \$4,896

LIABILITIES AND OWNERS' EQUITY
2011
Current liabilities \$382
Long-term debt \$2,160

2012
Current liabilities \$416
Long-term debt \$2,477

WESTON ENTERPRISES
2012 Income Statement
Sales = \$12,380
Costs = 5,776
Deprec = 1,150
Interest paid= 314

a. What is owners' equity for 2011 and 2012
b. What is the change in net working capital for 2012
c. In 2012, Weston Enterprises purchased \$2,160 in new fixed assets. How much in fixed assets did Weston Enterprises sell? What is the cash flow from assets for the year? (Tax rate is 40 percent)
d. During 2012,Weston Enterprises raised \$432 in new long-term debt. How much long-term debt must Weston Enterprises have paid off during the year? What is the cash flow to creditors?

2. (Answer in Excel): Financial Statements, Draw up an Income Statement and Balance Sheet for Ingersoll, Inc. for 2011 and 2012 using the following information.

INGERSOL, INC. -----------------------2011_______________2012

Sales ______________________\$7,835______________\$8,409
Depreciation_________________ 1,125_______________ 1,126
Cost of goods sold_____________ 2,696______________ 3,060
Other expenses_________________639________________ 534
Interest _______________________ 525 ________________603
Cash________________________ 4,109 ______________ 5,203
Accounts receivable_____________5,439 ______________ 6,127
Short-term notes payable__________ 794 _______________ 746
Long-term debt________________ 13,460 _____________ 16,050
Net fixed assets________________34,455 _____________35,277
Accounts payable________________4,316______________4,185
Inventory_______________________9,670______________9,938
Dividents_________________________956_____________1,051