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    Moodle Assignment Week 1

    Uploaded by

    Raed Boukeileh
    The document provides instructions for a Moodle assignment requiring students to: 1) Calculate operating cash flow, net capital spending, change in net working capital, cash flow from assets, cash flow to creditors, and cash flow to stockholders based on financial statements provided for Warf Computers. 2) Format the calculations and follow a cash flow statement table. 3) Answer questions analyzing Warf Computer's cash flows, which statement most accurately describes cash flows, and comments on the company's expansion plans in light of the analysis.

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    Moodle Assignment Week 1

    Uploaded by

    Raed Boukeileh
    90 views3 pages
    The document provides instructions for a Moodle assignment requiring students to: 1) Calculate operating cash flow, net capital spending, change in net working capital, cash flow from assets, cash flow to creditors, and cash flow to stockholders based on financial statements provided for Warf Computers. 2) Format the calculations and follow a cash flow statement table. 3) Answer questions analyzing Warf Computer's cash flows, which statement most accurately describes cash flows, and comments on the company's expansion plans in light of the analysis.

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    Moodle Assignment Week 1 (3)

    Original Title

    Moodle Assignment Week 1 (3)

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    The document provides instructions for a Moodle assignment requiring students to: 1) Calculate operating cash flow, net capital spending, change in net working capital, cash flow from assets, cash flow to creditors, and cash flow to stockholders based on financial statements provided for Warf Computers. 2) Format the calculations and follow a cash flow statement table. 3) Answer questions analyzing Warf Computer's cash flows, which statement most accurately describes cash flows, and comments on the company's expansion plans in light of the analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    90 views3 pages

    Moodle Assignment Week 1

    Uploaded by

    Raed Boukeileh
    The document provides instructions for a Moodle assignment requiring students to: 1) Calculate operating cash flow, net capital spending, change in net working capital, cash flow from assets, cash flow to creditors, and cash flow to stockholders based on financial statements provided for Warf Computers. 2) Format the calculations and follow a cash flow statement table. 3) Answer questions analyzing Warf Computer's cash flows, which statement most accurately describes cash flows, and comments on the company's expansion plans in light of the analysis.

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    Week 1 Moodle Assignment:

    Class,

    Here is the Moodle assignment for week one. As a reminder, here are some important notes from the syllabus:

    • Moodle assignments can be completed by team (no more than 3 to a team).


    • Put the team names of the team members at the top of the first page.
    • Follow the submission instructions posted with the assignment.
    • Assignments submitted without team information or in an unrequested format are at risk of losing points.
    • With team assignments there is a strong temptation to let a subset of the group work the assignment while
    the other members free ride. Exam scores always reveal which groups use that strategy: the assignment-
    workers score well, and the free-riders don’t. A better strategy is for team members to work each
    assignment individually, compare and refine answers, and then turn in one write-up that reflects the group
    consensus.

    Instructions for this assignment are as follows:

    • Team member names at the top left of page one


    • Using the information provided, please answer the following items (calculations must be shown)
    1. OCF
    2. Net capital spending
    3. Change in NWC
    4. Cash flow from assets
    5. Cash flow to Creditors
    6. Cash flow to Stockholders
    7. Accounting cash flow statement of cash flows

    For the items 1-6 listed above, please format as follows

    For item 7, please follow Table 2.7 of the test to properly format.

    Once the above is completed, answer the following items. (a few sentence paragraph will suffice)
    1. How would you describe Warf Computers’ cash flows?
    2. Which cash flow statement more accurately describes the cash flows at the company?
    3. In light of your previous answers, comment on Nick’s expansion plans.

    Submit your answers as a single word document, excel document or PDF. If you use excel, use a single tab
    only.
    Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial
    investment to start the company was made by Nick and his friends. Over the years, this same group has supplied
    the limited additional investment needed by the company in the form of both equity and short- and long-term
    debt. Recently the company has developed a virtual keyboard (VK). The VK uses sophisticated artificial
    intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling
    and grammatical errors, and format the document according to preset user guidelines. The VK even suggests
    alternative phrasing and sentence structure, and it provides detailed stylistic diagnostics. Based on a proprietary,
    very advanced software/hardware hybrid technology, the system is a full generation beyond what is currently on
    the market. To introduce the VK, the company will require significant outside investment.

    Nick has made the decision to seek this outside financing in the form of new equity investments and bank loans.
    Naturally, new investors and the banks will require a detailed financial analysis. Your employer, Angus Jones &
    Partners, LLC, has asked you to examine the financial statements provided by Nick. Here are the balance sheets
    for the two most recent years and the most recent income statement:

    Nick has also provided the following information: During the year the company raised $228,000 in new long-
    term debt and retired $197,000 in long-term debt. The company also sold $15,000 in new stock and repurchased
    $66,000 in stock. The company purchased $1,482,000 in fixed assets and sold $429,000 in fixed assets.

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