Please show the function on excel. The CEO of Working Capital Industries has bee
ID: 2329896 • Letter: P
Question
Please show the function on excel.
The CEO of Working Capital Industries has been provided the financial results (income statement and balance sheet) for the first sik months of the year. The CEO wants to understand the company's cash flow more precisely and has requested that you provide a complete cash flow statement for the six month period; an analysis of the company's cash flow; and any recommendation that you have for the remainder of the year. In making your recommendations, use ONLY the information in the problem. Do not make any outside assumptions. Your response should be in an excel spreadsheet and include the Income Statement, Balance Sheet and Cash Flow Statement, with all mathematical equations (i.e. no hard-coding, unless there is no other choice. Any results incorrectly hard coded will be marked incorrect!)Explanation / Answer
Working Capital Industries
Cash flow statement for the half year ended 2018
Recommendations:
As company investing in property, plant & equipment and paying long term debt is good but shoud keep reasonable cash balance and try to make some inflow from finance as well
Particular Working ($000) ($000) Operating Activities: Operating income (EBIT) 10500 Add: Depreciation Expenses 10000 Less: Increase in A/R 16000-12500 -3500 Less: Increase in Inventory 41000-28000 -13000 Less: Increase in prepaid expenses 1500-1000 -500 Add:Increase in A/P 22000-10000 12000 Add: Increase in short term notes 47000-17000 30000 Less: Decrease in accrued expenses 298-500 -202 Net cash flow from operating activities 45298 Investing Activities: Purchase of property, plant & equip. 126000-90000 -36000 Net cash flow from investing activities -36000 Financing Activities: Payment of long term debt 22950-28750 -5800 Interest paid -6100 Dividend paid (net income × payout ratio) 2860×30% -858 Net cash flow from financing activities -12758 Net Cash Flow from Activities -3460 Taxes paid -1540 Net Change in Cash -5000 Beginning Cash Balance 9000 Ending Cash Balance 4000