Excel Online Structured Activity: Statement of cash flows
You have just been hired as a financial analyst for BarringtonIndustries. Unfortunately, company headquarters (where all of thefirm's records are kept) has been destroyed by fire. So, your firstjob will be to recreate the firm's cash flow statement for the yearjust ended. The firm had $100,000 in the bank at the end of theprior year, and its working capital accounts except cash remainedconstant during the year. It earned $5 million in net income duringthe year but paid $700,000 in dividends to common shareholders.Throughout the year, the firm purchased $5.4 million of machinerythat was needed for a new project. You have just spoken to thefirm's accountants and learned that annual depreciation expense forthe year is $450,000; however, the purchase price for the machineryrepresents additions to property, plant, and equipment beforedepreciation. Finally, you have determined that the only financingdone by the firm was to issue long-term debt of $1 million at a 7%interest rate. The data has been collected in the Microsoft ExcelOnline file below. Open the spreadsheet and perform the requiredanalysis to answer the question below.
Statement of cash flows Cash at the Beginning of Year $100,000.00 Change in Net Operating Working Capital Except Cash $0.00 Net Income $5,000,000.00 Common Dividends $700,000.00 Machinery Equipment Purchases $5,400,000.00 Depreciation Expense $450,000.00 Long-Term Debt $1,000,000.00 Interest Rate on Long-Term Debt 7.00% Statement of Cash Flows I. Operating Activities Formulas Net income #N/A Depreciation expense #N/A Change in net operating working capital exceptcash $0.00 Net cash provided by (used in) operations #N/A II. Long-Term Investing Activities Additions to property, plant and equipment #N/A Net cash used in investing activities #N/A III. Financing Activities Increase in long-term debt #N/A Payment of common dividends #N/A Net cash provided by financing activities #N/A IV. Summary Net increase (decrease) in cash #N/A Cash at beginning of year $100,000.00 Cash at end of year #N/A
What was the firm's end-of-year cash balance? Recreate thefirm's cash flow statement to arrive at your answer. Write out youranswer completely. For example, 5 million should be entered as5,000,000. Round your answer to the nearest dollar, ifnecessary.
Excel Online Structured Activity: Statement of cash flows
You have just been hired as a financial analyst for BarringtonIndustries. Unfortunately, company headquarters (where all of thefirm's records are kept) has been destroyed by fire. So, your firstjob will be to recreate the firm's cash flow statement for the yearjust ended. The firm had $100,000 in the bank at the end of theprior year, and its working capital accounts except cash remainedconstant during the year. It earned $5 million in net income duringthe year but paid $700,000 in dividends to common shareholders.Throughout the year, the firm purchased $5.4 million of machinerythat was needed for a new project. You have just spoken to thefirm's accountants and learned that annual depreciation expense forthe year is $450,000; however, the purchase price for the machineryrepresents additions to property, plant, and equipment beforedepreciation. Finally, you have determined that the only financingdone by the firm was to issue long-term debt of $1 million at a 7%interest rate. The data has been collected in the Microsoft ExcelOnline file below. Open the spreadsheet and perform the requiredanalysis to answer the question below.
| Statement of cash flows | |||
| Cash at the Beginning of Year | $100,000.00 | ||
| Change in Net Operating Working Capital Except Cash | $0.00 | ||
| Net Income | $5,000,000.00 | ||
| Common Dividends | $700,000.00 | ||
| Machinery Equipment Purchases | $5,400,000.00 | ||
| Depreciation Expense | $450,000.00 | ||
| Long-Term Debt | $1,000,000.00 | ||
| Interest Rate on Long-Term Debt | 7.00% | ||
| Statement of Cash Flows | |||
| I. Operating Activities | Formulas | ||
| Net income | #N/A | ||
| Depreciation expense | #N/A | ||
| Change in net operating working capital exceptcash | $0.00 | ||
| Net cash provided by (used in) operations | #N/A | ||
| II. Long-Term Investing Activities | |||
| Additions to property, plant and equipment | #N/A | ||
| Net cash used in investing activities | #N/A | ||
| III. Financing Activities | |||
| Increase in long-term debt | #N/A | ||
| Payment of common dividends | #N/A | ||
| Net cash provided by financing activities | #N/A | ||
| IV. Summary | |||
| Net increase (decrease) in cash | #N/A | ||
| Cash at beginning of year | $100,000.00 | ||
| Cash at end of year | #N/A |
What was the firm's end-of-year cash balance? Recreate thefirm's cash flow statement to arrive at your answer. Write out youranswer completely. For example, 5 million should be entered as5,000,000. Round your answer to the nearest dollar, ifnecessary.
