12 Apr From the instructions provided in the files do a xlsx cash flow statement for 2015 andcl 2016 for wicked cupcakes then answer the
Due Date: Sunday by 11:59 p.m of Unit 5
Total Point: 100
Overview:
In this assignment, you will be creating a cash flow statement based on the Wicked Good Cupcakes income statement and balance sheet.
Instructions:
• Using the Cash Flow Statement Template provided, generate a Cash Flow Statement. Be sure to submit your Excel sheet along with your word document.
• Summarize your findings and observations.
• What is your analysis of their current profit vs. cash situation?
• Are they in danger of running out of cash? What are your findings? Explain.
• What does their, as Warren Buffet, refers, ‘owning earnings’ (free cash flow) look like?
Requirements:
• Two to three-pages, excluding the Title and Reference pages.
• All questions posed must be addressed completely.
• APA format, including in-text citations for referenced works.
Be sure to read the criteria, by which your assignment will be evaluated, before you write, and again after you write.
Evaluation Rubric for Cash Flow Statement Assignment
Criteria Exemplary Proficient Deficient
(28-30 Points) (20-27 Points) (0 – 19 Points)
Cash Flow Statement with All Assumptions Made Noted on the Statement
The cash flow statement is clearly presented, including
The cash flow statement is presented, though key details may not be clearly or completely presented.
Does not provide the cash flow statement, or the overview is missing key details.
(18-20 Points) (13-17 Points) (0 – 12 Points)
Current Profit vs. Cash Analysis
The current profit vs. cash is clearly presented, including analysis.
The current profit vs. cash is presented, though key details may not be clearly or completely presented.
Analysis is inadequate or missing.
Running out of Cash Analysis
Analysis of the danger of running out of cash is clearly presented.
Analysis of the danger of running out of cash is presented, though key details may not be clearly or completely presented.
Analysis is inadequate or missing.
Free Cash Flow Analysis
Analysis is clearly presented, including all key details.
Analysis is presented, though key details may not be clearly or completely presented.
Analysis is inadequate or missing.
(9-10 Points) (7-8 Points) (0 – 6 Points)
Clear and Professional Writing and APA Format
Writing and format are clear, professional, APA compliant, and error-free.
Few errors that do not impede professional presentation.
Errors impede professional presentation; guidelines not followed.
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Cash Flow Statement
| Cash Flow Statement 2016 | |||||
| ($ Thousands) | |||||
| Cash Flow from Operating Activities | Line(s) Used (e.g., 2015 Accounts Payable – 2016 Accounts Payable) | ||||
| Net income | |||||
| Change in Accounts Payable | |||||
| Change in Accounts Receivable | |||||
| Change in Inventory | |||||
| Other Adjustments: | |||||
| Accrued Expenses | |||||
| Depreciation Expense | |||||
| Income Taxes | |||||
| Net Cash provided by Operating Activities | |||||
| Cash Flow from Investing Activities | Line(s) Used | ||||
| Sale of Plant, Property and Equipment | |||||
| Purchase of Assets (Intangibles) | |||||
| Sales of other assets | |||||
| Income from short term investments (assumption from IS) | |||||
| Net Cash used in Investing Activities | |||||
| Cash Flows from Financing Activities | Line(s) Used | ||||
| Additions to long-term debts | |||||
| Cash dividends | |||||
| Repurchase of Treasury Stock | |||||
| Net cash used in Financing Activities | |||||
| Increase/Decrease in cash and cash equivalents | |||||
| Cash and Cash Equivalents at the beginning of the period | |||||
| Cash and Cash Equivalents at the end of the period | |||||
| ERROR:#REF! | ERROR:#REF! |
Balance Sheet
| ANNUAL BALANCE SHEET | |||
| ($ Thousands) | |||
| 31-Dec-15 | 31-Dec-16 | ||
| ASSETS | |||
| Cash & Short-Term Investments | $17.11 | $25.05 | |
| Net Receivables | $1.62 | $1.84 | |
| Inventories | $42.72 | $39.68 | |
| Prepaid Expenses | $0.00 | $0.00 | |
| Other Current Assets | $3.38 | $2.93 | |
| Total Current Assets | $64.84 | $69.49 | |
| Gross Plant, Property & Equipment | $63.75 | $58.28 | |
| Accumulated Depreciation | $36.16 | $32.61 | |
| Net Plant, Property & Equipment | $27.58 | $25.67 | |
| Intangibles | $5.88 | $6.01 | |
| Other Assets | $6.16 | $5.81 | |
| TOTAL ASSETS | $104.47 | $106.98 | |
| LIABILITIES | |||
| Long Term Debt Due In One Year | $0.00 | $0.00 | |
| Accounts Payable | $10.59 | $11.91 | |
| Taxes Payable | $1.87 | $2.01 | |
| Accrued Expenses | $7.19 | $6.91 | |
| Other Current Liabilities | $1.88 | $1.85 | |
| Total Current Liabilities | $21.54 | $22.67 | |
| Long Term Debt | $6.95 | $19.79 | |
| Deferred Taxes | $1.16 | $2.32 | |
| Other Liabilities | $3.04 | $2.43 | |
| TOTAL LIABILITIES | $32.68 | $47.21 | |
| EQUITY | |||
| Common Stock | $0.07 | $0.06 | |
| Capital Surplus | $27.25 | $24.31 | |
| Retained Earnings | $73.89 | $61.10 | |
| Less: Treasury Stock | $29.42 | $25.71 | |
| TOTAL EQUITY | $71.79 | $59.77 | |
| TOTAL LIABILITIES & EQUITY | $104.47 | $106.98 | |
| Common Shares Outstanding | $5.14 | $5.05 |
Income Statement
| Annual Income Statement | |||
| ($ Thousands, except per share ) | |||
| 2015 | 2016 | ||
| Sales | $179.24 | $164.28 | |
| Cost of Goods Sold | $95.71 | $91.99 | |
| Gross Profit | $83.53 | $72.29 | |
| Selling, General, & Administrative Exp. | $56.36 | $50.65 | |
| Operating Income Before Deprec. | $27.17 | $21.64 | |
| Depreciation,Depletion,&Amortization | $5.85 | $5.89 | |
| Operating Profit | $21.33 | $15.74 | |
| Interest Expense | $0.88 | $0.56 | |
| Non-Operating Income/Expense | $0.93 | $0.31 | |
| Special Items | $0.00 | $0.00 | |
| Pretax Income | $21.38 | $15.49 | |
| Total Income Taxes | $7.23 | $5.60 | |
| Income Before Extraordinary | |||
| Items & Discontinued Operations | $14.15 | $9.90 | |
| Savings Due to Common Stock Equiv. | $0.00 | $0.00 | |
| Adjusted Net Income | $14.15 | $9.90 | |
| EPS Basic from Operations | $0.26 | $0.19 | |
| EPS Diluted from Operations | $0.25 | $0.19 | |
| Dividends Per Share | $0.02 | $0.00 | |
| Com Shares for Basic EPS | $5.06 | $5.12 | |
| Com Shares for Diluted EPS | $5.21 | $5.27 |
