FINANCE 43OO
PROJECT 2
CASH FLOW STATEMENT PREPARATION
please fol iow these instruct ions to complete Project 2:
j . Using the f ive years of f inanciai c jata that you obtained through Research lnsight for your selected
company, load the historical data into finpad.fts following the instructions in your finpad.fts user's
g u i d e '
a. Remember to set the number of active historical periods in finpad.fts to five by changing
the appropriate sett ing.
. You wi l l need to load Balance Sheet data, Income Statement data, and Equity
Reconci l iat ion data. t
c. Historical financial periods are shaded light green in finpad.fts.
d. Historical financial periods are loaded left to right starting with your earliest financial
oer iod.
e. finpad.fts will prompt you if any hrstorical financial periods are out of balance. lf any
periods are out of balance, please audit your work using the following steps.
i. Look to the darker green rows below the Cash Flow Statement for Unexplained
Cash Flow Difierences and Balance Sheet discrepancies.
ii. Look to the darker green row in the Equity Reconciliation report for Unexplained
Equity Reconcil iation Differences.
iii. Verify that your Balance Sheet balances. Please make sure that you address
any rounding e
ors.
i ' " . l f your Balance Sheet balances, ver i fy that your income Statement is loaded
co
ect ly and that no rounding e
ors exist .
l f your Balance Sheet and Income Stalement are loaded co
ect ly, check the
Equity Reconci l iatron report for an Unexplained Dif ference that wi l l very l ikely i
equalthe Unexplained Dif ference on the Cash Flow Statement. Add the
Unexplained Difference amounl on the Equity Reconciliation report to that
eporl 's "Other Changes to R/E" account, adding the amount to any previous
entry. l f the Cash Flow Statement and Equity Reconci l iat ion report Unexplainec
Difference amounts are equal, this entry should balance the affected period(s). lf
the amounts are not equal, make the suggesteci entry anci continue auditing you
work following the suggestions above.
vi. lf after fo)lowing the above auditing steps your data stil l does not balance, please
iake these steDs.
".
For very smal l amounts (var iance-s of 1.O1ok or iess), please plug rhe
umbers f v round ing the appropr ia te account (s ) up or oown.
L . 7or ia rger a inoun is , o r i f you ' re e i a roa) D lock , c iease see n re .
f inpad.f is wi l i prepare a four-year Cash Flow Statement for your company using the hisior ical oara
that you ioacjed in SteP 1.
e. Please note thai tne prepa:-ai ion of a Cash Flow Statement requires tnree f inancial
sratements - a cu
eni vear inborie statement, a cu
ent year Salance Sheet. ano a
previous yeal Balance Sheei.
: Since two Batance Sheei pei ' rocs are requirec. cnlV icu: cash f lo! \ 's laler,€i- , iS 32r, t ,€
calculated rn,ith five y,ear,c of financial cata.
l jease aooress ihe foi lowrnc' to9ics anc quest ions. Prepare .vcui ens\4'ers r , :vDewri t ien io
ie ' i .
inctuoe ancj foornoie ine f inpac.f is Casl- , Ftov, ' Statemenr., ano piace i /our wo
, i r a sp
al binoe:.
e Preseni and oescribe ihe companr, 's f ive largest sources of cash and frve largest uses of
cash.
anc uses oven img.
€l- rC 3€iCel . , l cnanges i : t i reSe ; ive laroest SoUrceS
l
i } v A , )v \
N
I
Have the f i ve ia rges t sou :c€s arc uses cnangec cver i l i : ' e? i i i i e . i ' ave p . resen i a '
- i e . e : , c c i F c e c a r i 2 . a c
ix a i, i : i :, g : i e i; --' s :3 s - FouJ shtan erf, hqq doq {6e,fim{S oe$ b*renA€Cll
eosr+t'on ripa.1s.FA2| " |
.i posi t ion? ^6 iF\c r i rm'c f inancia l s tatements i f } 'our suggested; \(hat would De-tne inlP?:i on t l : i11;; nnun"ial statements i
improvement, ,o, .uri ] f low vyere
implemented? To answer this question'
you wtl l have
io use the frnanoaiio,"ca.ting
t
tr|'r'in i'np.o tt= For. help on the financial
f orecasting
feature in 'npao.f is, ptease see
the f i"p;;{. ;ei 's guioe, and the Proiect
3 and Project
a. 3i$:3J["Jittp,tt of
these chanses on the financial statements'
[. Remember to urJin, finpad.fts
nefp commenti for Casn Flow Statement
explanations'
\ \ l n a , r c a n i h e f l r m d o t o s o l v e a n . v c a s h p r o b l e m s t n a t i l h a S a n c j t o i m p r o v e i t s c a s h
: , l . i
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