Question

Submit a paper which is 2-3 pages in length (no more than 3-pages), In this paper, in addition to presenting the computed answers, please also discuss how you arrived at each answer the accounting problem asks. The accounting problem presents a company’s balance sheet, income statement, and statement of cash flows for a theoretical company, Polly’s Pet Products. Each of these statements has blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. Include in this narrative an explanation of:
1) the financial statement being completed;
2) the account being valued;
3) its relationship to the other financial data.

For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and explain that you can derive the AP value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a conclusion about the company’s performance based on the completed statements.To complete this assignment, refer to the income statement, balance sheet, and statement of cash flows of Polly’s Pet Products.

Please Note:

Superior papers will mention and explain the following elements when responding to the assignment question:

• Provide correct balances for the blank financial account lines.

• Define the financial statement being completed.

• Discuss how the values were determined.

• Define and explain each account line that was completed.

• Analyze, evaluate, and develop conclusions about the company’s performance based on the financial information.

Polly's Pet Products
Statement of Cash Flows as of December 31, 2018
Cash Flows from Operating Activities
Cash received from customers		600 000
Cash paid out to suppliers and employees
Interest paid		(5 000)
Taxes paid		(10 000)
	Net cash provided by operating activities		185 000
Cash Flows from Investing Activities
Purchase of fixed assets		(25 000)
	Net cash used in investing activities		(25 000)
Cash Flows from Financing Activities
New loans		50 000
Repayments on loans		(45 000)
Issuance of common shares of stock		5 000
	Net cash provided by financing activities
	Net change in Cash
	Cash balance, beginning of year		30 000
	Cash balance, end of year

Please scroll to the right the figures are there and they are very clear please.

Answer 1

Statement of Cash Flows as of December 31, 2018
Cash Flows from Operating Activities
Cash received from customers	600,000
Cash paid out to suppliers and employees	- 400,000
(185,000 + 5,000 + 10,000 - 600,000 )
Interest paid	-5,000
Taxes paid	-10,000
Net cash provided by operating activities		185,000
Cash Flows from Investing Activities
Purchase of fixed assets	-25,000
Net cash used in investing activities		-25,000
Cash Flows from Financing Activities
New loans	50,000
Repayments on loans	-45,000
Issuance of common shares of stock	5,000
Net cash provided by financing activities		10,000
(50,000 - 45,000 + 5,000 )
Net change in Cash ( 185,000 - 25,000 + 10,000 )		170,000
Cash balance, beginning of year		30,000
Cash balance, end of year ( 170,000 + 30,000 )		200,000

Conclusion: Based on analysis of Cash flow statement , we can say that the Company has sufficient cash flow to meet its working capital & Capital expenditure. The company is cash rich company.