Explore BrainMass
Share

Explore BrainMass

    Calculating the Cash Flows & Abbreviated Financial Statements

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    Answer using Excel:
    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

    © BrainMass Inc. brainmass.com October 10, 2019, 6:30 am ad1c9bdddf
    https://brainmass.com/business/financial-statements/calculating-cash-flows-abbreviated-financial-statements-546429

    Solution Summary

    The expert calculates the cash flows and abbreviated financial statements.

    $2.19