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Assignment 2: Statement of Cash Flows Analysis and Final Project Week 3: Investing and Financing Activities; Interim Presentation of Findings

Part One: Statement of Cash Flows Analysis

You are given the following information for Barko Industries:

Barko Industries
Balance Sheet (Partial)
	Year 3	Year 4
Cash	$70,000	$9,640
AR	70,000	85,000
Inventories	87,000	84,000
Accounts Payable	48,000	51,000

Barko Industries
Income Statement
For the Year Ending December 31, Year 4
Sales		$560,000
Operating Expenses	$420,000
Depreciation Expense	46,000	466,000
Income Before Taxes		$94,000
Income Tax Expense		$37,600
Net Income		$56,400

Other Data:

· Barko Industries sold an asset and recorded a loss on the sale of $8.700. The sale price was $220,000 and the asset was originally purchased for $360,000.

· Dividends paid in Year 4 were $22, 460.

Required:

1. Prepare a statement of cash flows for the year ending December 31, Year 4 using the indirect method.

2. What conclusions could you arrive at regarding the cash position of the firm?

3. What information was provided in the statement of cash flows that was not evident if just the balance sheet and the income statement were examined?

Part Two:  Final Project Week 3: Investing and Financing Activities; Interim Presentation of Findings

Companies for this section is Aetna and Centene

Examine the statement of cash flows for the companies you selected in Week 1 for the most recent year. Address the following concerns:

1. What are the two largest investing activities and financing activities for each firm?

2. Compare and contrast the investing and financing activities of the two companies.

3. Evaluate the investing and financing strategies of the two firms? Provide a rationale for your opinion as to the effectiveness of each of the strategies.

Required:

1. Address the above-noted questions.

2. Prepare a Microsoft PowerPoint presentation of 5-10 slides that summarizes your findings for the two companies for Weeks 1 to 3 of the Final Project.

Deliverables:

1. By Tuesday, September 1, 2015, submit your answers to the questions in Part One, using an MS Excel document, to the W3: Assignment 2 Dropbox. Use good form, show all your calculations and conclusions.

Name your document SU_FIN4060_W3_A2_Part1_LastName_FirstInitial

2. By Tuesday, September 1, 2015, address the issues for the Final Project,Week 3 outlined in Part Two, in a report using an MS Word document, and submit your document to the W3: Assignment 2 Dropbox. Use good form, and cite all sources using APA format.

Name your document SU_FIN4060_W3_A2_Part2_LastName_FirstInitial

3. By Tuesday, September 1, 2015, create a Microsoft PowerPoint presentation consisting of 5-10 slides that summarizes your findings for the Final Project over the last three weeks.  Post this assignment in the W3: Assignment 2 Dropbox.

Name your document SU_FIN4060_W3_A2_Presentation_LastName_FirstInitial

Assignment 2 Grading Criteria	Maximum Points
Correctly prepared a statement of cash flows using the indirect method	50
Correctly identified the cash position of the firm and provided accurate conclusions. Correctly identified information provided in the statement of cash flows that would not be evident by just examining the balance sheet and income statement.	25
Identified the largest investing and financing activities of the two firms selected for research.	15
Compared and contrasted the investing and financing activities of the two firms.	25
Evaluated the investing and financing strategies of the two firms and provided a rationale as to the effectiveness of each strategy.	35
Created a 5-10 slide Microsoft PowerPoint presentation that effectively summarized the findings for the two companies for Weeks 1 to 3 of the Final Project.	20
Commented on at least two other presentations and participated in the discussion.	10
Presented a structured report free of spelling and grammatical errors and cited sources in APA format when necessary.	20
Total:	200