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Gears is a 5-year-old company that specializes in bike components. The company is having trouble paying...

Gears is a 5-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 will spend it, and when the company will require additional cash. Gears would like to project a cash flow statement for the next month.

Using the AYK2_Data.xlsx data file, 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.

       
  Gears Cash Flow Statement January    
  Cash on Hand (beginning of month) $ 18,456  
       
  CASH RECEIVED    
  Cash Sales $ 23,894  
  Credit Sales Accounts $ 36,421  
  TOTAL CASH RECEIVED      
       
  CASH PAID OUT    
  Inventory $ 15,340  
  Payroll expenses    $ 17,560  
  Supplies (office & oper.) $    4,500  
  Repairs & maintenance $    3,500  
  Advertising $    2,890  
  Car, delivery & travel $    1,500  
  Accounting & legal $       750  
  Rent $    4,000  
  Telephone $       120  
  Utilities $       430  
  Insurance $    1,020  
  Taxes (real estate, etc.) $       600  
  Miscellaneous $       350  
  TOTAL CASH PAID OUT    
       
  CASH POSITION (END OF MONTH)    
       
Input boxes in tan
Output boxes in yellow
Given data in blue
Answers in red

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