Assumptions (Currency: €)Cap. ex€1000Asset life10 yearsCash from sales€1200 per yearCost of goods sold (COGS)700 (all paid in cash not stock at the year end)SG&A (exclude depreciation)150 (all paid in cash)Owner equity700Now assume that as well as the €1200 received from customer the company sells extra goods for €100 in year 1 that will be paid in year 2, please consider also that 50€ of SG&A will be due first on the forthcoming year. Build a spreadsheet that forecasts the cash flow, income statement and balance sheet of ABC for the first year. Cash flow projectionsYear 1Cash flow from salesDepreciationReceivablesPayablesCash from operationsCAP&XCash from investingOwners equityCash from financingBeginning cash balanceTotal change in cashEnding cash balance0.000.00Income statementYear 1SalesCOGSGross profitSG&ASatffDepreciationNet ProfitBalance sheetCost of assetsLess accumuleted depreciationNet Book Value of AsssetCurrent assetsBankReceivablesAssetsCapital and reserveShare capitalRetained profitPayablesLiabilitiesO olo

Cash flow projections: It is a the break down of the Cash which is expected to be received and…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assumptions (Currency: €)

Cap. ex	€1000
Asset life	10 years
Cash from sales	€1200 per year
Cost of goods sold (COGS)	700 (all paid in cash not stock at the year end)
SG&A (exclude depreciation)	150 (all paid in cash)
Owner equity	700

Now assume that as well as the €1200 received from customer the company sells extra goods for €100 in year 1 that will be paid in year 2, please consider also that 50€ of SG&A will be due first on the forthcoming year. Build a spreadsheet that forecasts the cash flow, income statement and balance sheet of ABC for the first year.

Cash flow projections
Year 1
Cash flow from sales
Depreciation
Receivables
Payables
Cash from operations
CAP&X
Cash from investing
Owners equity
Cash from financing
Beginning cash balance
Total change in cash
Ending cash balance
0.00
0.00
Income statement
Year 1
Sales
COGS
Gross profit
SG&A
Satff
Depreciation
Net Profit
Balance sheet
Cost of assets
Less accumuleted depreciation
Net Book Value of Assset
Current assets
Bank
Receivables
Assets
Capital and reserve
Share capital
Retained profit
Payables
Liabilities
O olo

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