Western Governors New Venture Financing Cash Flow Management Worksheet

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Business Finance

Western Governors University

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Attached is a link to an excel spreadsheet with balance sheets for 2015 and 2014 and an income statement for the year ended December 31, 2015. Please answer the questions shown at the bottom of the spreadsheet and show your work, as needed. You should save the worksheet using "SAVE AS" under the same file name with your surname included. For example, my file name would be Module 4 Cash Flow Assignment_Pratt.xlsx. After saving, upload your completed spreadsheet to ELMS.

Module 4 Cash Flow Assignment-3.xlsx

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FINANCIAL CASH FLOW PROBLEM Balance Sheet ($ in Millions) Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Property, Plant, and Equipment Less Accumulated Depreciation Net Fixed Assests Total Assets Based on the above balance sheets and income statement, calculate the following values and financial ratios for the fiscal year 2015: Operating Cash Flow Capital Spending Working capital at 12/31/2015 Change in Working Capital from 2014 Cash Flow to Debt holders Cash Flow to Stockholders Inventory turnover to nearest tenth based on average inventory for the year Cash "freed-up" by increasing inventory turn to 2 Days sales in Receivables (nearest tenth) based on average receivables for the year Cash "freed-up" by reducing days sales to 45 at 12/31/2015 Note: For all $ calculations, round to the nearest million. e Sheet ($ in Millions) ####### ###### $620 370 830 $1,820 $600 400 900 $1,900 $2,030 685 $1,345 $2,100 520 $1,580 $3,165 $3,480 Answer Block Liabilities and Owners' Equity Current Liabilities Accounts Payable Notes Payable Total Current Liabilities Long-Term Liabilities Long-Term Debt Total Long-Term Liabilities Owners' Equity Common Stock ($1 Par) Retained Earnings Total Owners' Equity Total Liab. and Owners' Equity Formulas (show work here) Income Statement ($ in Millions) ###### $730 590 $1,320 41 $41 840 964 ###### $830 560 $1,390 680 $680 $1,804 770 640 $1,410 $3,165 $3,480 Sales Cost of Goods Sold Administrative Expenses Depreciation Earnings Before Interest and Taxes Interest Expense Taxable Income Taxes Net Income MEMO: Dividends Paid in 2015 Year Ended 12/31/2015 $2,300 1,300 100 165 $735 90 $645 250 $395 $71
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Explanation & Answer

Attached.

FINANCIAL CASH FLOW PROBLEM

Balance Sheet ($ in Millions)
Assets

12/31/2015

12/31/2014

$620
370
830
$1,820

$600
400
900
$1,900

Net Fixed Assests

$2,030
685
$1,345

$2,100
520
$1,580

Total Assets

$3,165

$3,480

Current Assets
Cash
Accounts Receivable
Inventory
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Less Accumulated Depreciation

Based on the above balance sheets and income statement, calculate the following
values and finan...


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