Business Driven Technology 6th Edition by Paige Baltzan

Exercise 50

Cash Flow
Gears is a five-year-old company that specializes in bike components. The company is having trouble paying for its monthly supplies and would like to perform a cash flow analysis so it can understand its financial position. Cash flow represents the money an investment produces after subtracting cash expenses from income. The statement of cash flows summarizes sources and uses of cash, indicates whether enough cash is available to carry on routine operations, and offers an analysis of all business transactions, reporting where the firm obtained its cash and how it chose to allocate the cash. The cash flow statement shows where money comes from, how the company is going to spend it, and when the company will require additional cash. Gears would like to project a cash flow statement for the next month.
Project Focus
Using the data file AYK2_Data.xlsx complete the cash flow statement for Gears using Excel. Be sure to create formulas so the company can simply input numbers in the future to determine cash flow.
Data File: AYK2_Data.xlsx