I think the should take a second look at expenses and try to diminish some of

I think the should take a second look at expenses and

This preview shows page 2 - 5 out of 8 pages.

even more than it ddoes now. I think the should take a second look at expenses and try to diminish some of the cost on marketing to gain more profits for the future.
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1. Construct statements of cash flow for 20X2 and 20X3 2. Answer the questions at the bottom of the page First we need to calculate the changes in working capital See the formulas in Column B to obtain the same information for 20X3 Use the Cash Flow worksheet to help you calculate the 20X3 Cash Flow Statement PROTEK COMPANY Changes in Working Capital Accounts For the years ended 12/31/20X2 and 12/31/20X3 ($000,000) 20X2 20X3 Accounts receivable $(176) (239) Inventory -61 -149 Accounts payable 25 53 Accruals 5 10 $(207) (325) The Statement of Cash Flows then follows directly: See the formulas in Column B to obtain the same information for 20X3 PROTEK COMPANY Statements of Cash Flows For the years ended 12/31/20X2 and 12/31/20X3 ($000,000) 20X2 20X3 Operating Activities Net Income $145 77 Depreciation 250 275 Change in Working Capital -207 -325 Cash from Operating Activities $188 27 Investing Activities Increase in Fixed Assets -808 -345 Cash from Investing Activities $(808) (345) Financing Activities Increase in Debt 630 340 Cash from Financing Activities $630 340 Net Cash Flow $10 22 Reconciliation Beginning Cash $30 $40 Net Cash Flow 10 22 Ending Cash $40 $62 Where is the company's money going to and coming from? It looks like the company's money is going mostly into Working Captial and Fixed Assets. I think that the money is coming from the company borrowing more money from banks and investors. It looks like between the year debt is at an increase producing more money, but leaving more to give back once the company is making more of a profit.
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Practical Financial Management, William R. Lasher, Copyright 2005 Cash Flow Chapter 3 Instructions: To create a Statement of Cash Flows for a period from beginning and ending Balance Sheets and an Income Statement for the period, enter the account totals in the green cells. The program calculates the totals and subtotals and produces the statement shown in the blue cells. Also enter the company name and closing date in the indicated green cells (dates will change throughout the spreadsheet automatically). Notice that if you are working with a forcast period, you can evaluate the cash flow impact of changes by simply changing one or more of the green cells.
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