Create a statement of cash flow for the current year using Wright Co's income statement and balance sheet. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Income Statement: Revenue Cost of Goods Sold Gross Margin SG&A EBITDA Depreciation Expense EBIT Interest Expense Current Year 4,500.00 2,250.00 2,250.00 580.00 1,670.00 540.00 1,130.00 170.00
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
![Total Current Assets
Net Fixed Assets
Total Asset
Liabilities and Equity Prior Year
Accounts Payable
300
Notes Payable
Total Current Liabilities
Long-Term Debt
Total Liabilities
Common Stock and
Paid-in Capital
Retained Earnings
Total Equity
Total Liabilities &
Equity
1,000
1,300
2,000
3,300
2,200
1,000
3,200
6,500
1,500
5,000
6,500
What is Wright's Cash Flow from Operations
What is Wright's Cash Flow from Investments
????
5,300.00
????
What is Wright's Provide by Financing Actives
What is Wright's Net change in cash
What is Wright's Ending Cash Balance
Current Year
350.00
900.00
Use SinCo's Income Statement and Balance Sheet to create a Statement of Cash Flows for the current year.
What is Wright's Change in Working Capital
1,250.00
2,500.00
????
2,200
1,214.00
????
????
Does the 2014 Cash Balance from the Balance Sheet equal the Ending Cash Balance from the Statement of Cash Flows?
(Click to select)
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a9ac9b2-b9a4-43cb-af87-93cef9eb48ea%2Ffe316d99-c968-40cd-b1e1-6a89b2eea471%2Ftla18xj_processed.jpeg&w=3840&q=75)
![Create a statement of cash flow for the current year using Wright Co's income statement and balance sheet. (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
Income Statement:
Revenue
Cost of Goods Sold
Gross Margin
SG&A
EBITDA
Depreciation Expense
EBIT
Interest Expense
EBT
Taxes
Net Income
Dividends
Addition to Retained
Earnings
Balance Sheet:
Assets
Cash
Accounts Receivables
Inventory
Total Current Assets
Net Fixed Assets
Total Asset
Current Year
4,500.00
2,250.00
2,250.00
580.00
1,670.00
540.00
1,130.00
170.00
960
336.00
624.00
410
214.00
Prior Year Current Year
800
400
300
1,500
5,000
6,500
????
425.00
350.00
????
5,300.00
????](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a9ac9b2-b9a4-43cb-af87-93cef9eb48ea%2Ffe316d99-c968-40cd-b1e1-6a89b2eea471%2Fu9o0ndd_processed.jpeg&w=3840&q=75)
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