$13,500 During 2011 how much cash did Wicked Good Cupcakes collect from sales 2.
ID: 2814283 • Letter: #
Question
$13,500
During 2011 how much cash did Wicked Good Cupcakes collect from sales 2. During 2011 what was the cost of goods produced by the company? 3. Assuming that Wicked Good Cupcakes neither sold/salvaged assets during the year, what were the capital expenses during 2011? 4. Assuming that there were no financing cash flows during 2011, using the information from above, what was Wicked Good Cupcake’s cash flow from operations in 2011? 5. Does your analysis of these selected financial data justify O’Leary’s interest and partnership in Wicked Good Cupcakes? Explain. 6. Based on the analysis above; if you were a Shark Tank investor what would your offer be? Explain the rational for your offer.
2010 2011 Net sales $69,400 $78,200 Cost of goods sold $45,000 $50,200 Depreciation $5,100 $6,100 Net Income $13,000 $14,200 Finished goods inventory $3,900 $2,900 Accounts receivable $5,700 $8,700 Accounts payable $3,900 $4,400 Net fixed assets $40,400 $48,200 Year-end cash balance $8,600$13,500
Explanation / Answer
1)cash collection from sales =Beginning receivable + net sales of 2011 - ending receivable
= 5700+78200-8700
= 75200
2)cost of goods produced =Ending finished goods +cost of goods sold for 2011 -beginning finished goods
= 2900+50200-3900
= 49200
3)capital expenses during 2011 = net fixed asset at end - net fixed at beginning +depreciation
= 48200-40400+6100
= 13900
4)change in cash during the year =ending cash balance -beginning cash balance
= 13500-8600
= 4900
change in cash = cash flow from operating activity +investing activity+financing activity
4900 = OCF+ (-13900)+0
4900 = OCF -13900
OCF= 4900+13900 = $ 18800
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