Using the Blazer Corporation information and financial statements created in Unit 2, create a statement of Cash Flows for 2018. Then answer the following questions about the statements and the corporation.
1. What items provided used the most cash during 2018?
2. What decisions by management possibly led to the change in cash position during the year? How did these decisions affect cash flow?
3. What would the 2018 ending cash had been if the following management decisions were made? Present the cumulative answer, not the cash result of each individual decision:
a. The company ran a series of sales that increased sales income by $2,000. The cost of goods sold was 35% of those new sales and were paid for in cash. The company collected 70% of the increased sales in cash.
b. The company slowed down payment of its accounts payable, retaining $950 in cash.
c. The company cashed in $725 of its short-term investments.
Requirements: Show the complete cash flow statement that you produced. For the part of the analysis and the analysis of management’s decisions, show your work so that the reader can tell how you determined your answers.
