CBA Company

Statement of Cash Flo

For the Year Ended Decembe

Cash Flow from Operating Activities:

Net Income
Prepaid Expense
Depreciation Expense
Increase/Decrease in Receivables
Increase/Decrease in Inventory
Increase/Decrease in Payable
Net Cash Flows from Operating Activities:

Cash Flow from Investing Activities:

Purchase of PPE
Purchase of Additional Investment
Net Cash Flows from Investing Activities:

Cash Flow from Financing Activities:

Increase of Notes Payable

Issuance of Additional Stocks
Payment of Dividends
Net Cash Flows from Financing Activities:

Net Change in Cash

Cash and Cash Equivalents - January 01, 2020
Cash and Cash Equivalents - December 31, 2021
 CBA Company
Statement of Cash Flows
Year Ended December 31, 2021

238,000
50,000
60,000
-260,000
-240,000
140,000
-12,000

-530,000
-20,000
-550,000

500,000
300,000
-38,000
762,000

200,000
150,000
350,000
 Basel Indust
Statement of Cas
For the Year Ended Dec

Cash Flow from Operating Activities:

a. Net Income
b. Depreciation
Net Cash Flow from Operating Activities

Cash Flow from Investing Activities

a. Additions to Property, Plant and Equipment

Net Cash Flow from Investing Activities

Cash Flow from Financing Activities

a. Increase in Long-term debt

b. Payment of Common Dividends
Net Cash Flow from Financing Activities

Net Change in Cash

Cash and Cash Equivalent, January 01, 2022
Cash and Cash Equivalent, December 31, 2022
 Basel Industries
Statement of Cash Flows
For the Year Ended December 31, 2022

ng Activities:

5,000,000
450,000
ting Activities 5,450,000

g Activities

Equipment -5,500,000
ing Activities -5,500,000

ng Activities

1,000,000
-750,000
ing Activities 250,000

ash 200,000
nuary 01, 2022 100,000
ecember 31, 2022 300,000
 a. What was net operating working capital for 2014 and 2015?

2015 2014
Current Assets 72,125 59,000
Non - Interest Bearing Current Liabilities -18,400 -15,000
NOWC (Net Operating Working Capital) 53,725 44,000

b. What was Bailey's 2015 free cash flow?

OCF = NOPAT + Depreciation and Amortization

= EBIT (1 - Tax Rate) = Dep. and Amortization
= 39,000 (60%) + 5,000
= 28,400

Capital Expenditure = Net Plant & Equipment 2014 + Depreciation and Amortization
= (50,000 - 47,000) + 5,000
= 8,000

NOWC = 53,725 - 44,000

= 9,725

FCF = 28,400 - (8,000 + 9,725)

= 28,400 - 17,725
= 10,675
 c. Construct Bailey's 2015 Statement of Stockholder's Eq

Bailey Corporation
Statement of Stockholders Equit
For the year ended December 31, 2

Total Shareholder's equity, January 1, 2015

Shares Issued during the year
Total Investment
Net Income
Less: Dividends declared and paid
Total Shareholder's equity, December 31, 2015

d. What was Bailey's 2015 EVA? Assume that its after-tax cost of c

EVA = 23,400 - (10%) (NOWC + Net Fixed Assets)

= 23,400 - (10%) (53,725 + 50,000)
= 23,400 - (10%) (103,725)
= 23,4000 - 10,372.50
= 13,027.50

e. What was Bailey's MWA at year-end 2015? Assume that its stock price at Decem

MVA = (20 * 5,000 shares) - 82,025

= 100,000 - 82,025
= 17,975
ement of Stockholder's Equity

Bailey Corporation
ment of Stockholders Equity
year ended December 31, 2015

50,000
20,850
70,850
22,350
-11,175
82,025

e that its after-tax cost of capital is 10%.

that its stock price at December 31, 2015 was 20 dollars.