Jenga Cash Flow Exercise

Table of Contents
Jenga Cash Flow Exercise

Notes
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Jenga Cash Flow Exercise
Instructions:
1. Calculate the differences on the balance sheet
2. Calculate net CAPEX using the note below the balance sheet
3. Complete the cash flow statement
4. The boxes to complete are in gray

INCOME STATEMENT Year 2 BALANCE SHEET Year 1 Year 2 Difference CASH FLOW STATEMENT
ok ok
Revenue 550 Current assets Operating cash flows
Purchases (380) Cash 496 409 87 Net income 8
Gross profit 170 Receivables 80 150 (70) Depreciation 90
Expenses (50) Inventory 60 80 (20) Increase in receivables 70
Depreciation (90) 636 639 Increase in inventory 20
Operating profit (EBIT) 30 Non-current assets Increase in payables 20
Interest expense (18) PPE 810 730 80
Earnings before tax 12
Tax at 33% (4) Total assets 1,446 1,369 Investing cash flows
Net income 8 Net capex 10
Current liabilities
Retained earnings note Payables 30 50 20 Financing cash flows
Net income 8 Repayment of loans 100
Dividend (5) Non-current liabilties Dividend payment 5
Retained earnings 3 Long term borrowing 400 300 (100) 105

Shareholders' equity Change in cash 87

Common stock 1,000 1,000 Cash at start of year 496
Retained earnings 16 19 3 Cash at end of year 409
1,016 1,019
Matches balance sheet? ok
Total liabilites and equity 1,446 1,369

PPE note
Opening PPE 810
Net capex 10
Depreciation (90)
Closing PE 730