In this project you will apply some of the principles of system design and implementation to develop
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In this project you will apply some of the principles of system design and implementation to
develop a useful cash flow statement template using an electronic spreadsheet. You must prepare
a preliminary design or specification report that includes:
General description of the system both in terms of the business problem and the system
aspects.
Identify the objectives, scope and benefits of the system both in general what the system will
do for solving the problem and what little features you have or incorporated into your
template. Make sure you describe the benefits of the cash flow statement for business
decision makers.
Identify system Requirements:
Inputs and source of data Financial statements. Make sure you have a data section in your
spreadsheet
Processes: Converting accrual financial data into cash basis
Outputs: Useable easy to read cash flow statement
You should design the system so that a user could easily follow the computations of how the
inputs are converted into the output values. Your spreadsheet model should have an input section
in which you can type in the input data. Any cells, other than labels, outside the input section
cannot use typed in values. The sections outside the input section must use some type of formula,
cell reference, lookup, calculation, etc. that changes automatically based on changes in data
inputs. The template should be very user friendly so that formulas are easy to follow rather than
just a collection of cell references. Labels should be used to help identify how cash flow
statement formulas are used. Since we are using an electronic spreadsheet, the detailed
requirements are somewhat built into the system. For example, you really do not need to specify
how many digits, etc., there will be in each column.
Prepare a prototype computerized cash flow statement spreadsheet model for OKeefe
Inc. andor High Tech Resources cases found in the cash flow data pdf file. The solutions
for these are provided to you so you will have a complete example to help you check
your prototype spreadsheet for accuracy. Your template should use formulas as much as
possible, so the template can be used for other cases. Your template should include the
Balance Sheet for two years and the changes the Income Statement, other details as the
input. The cash flow statement should include cash flows from operating activities using
the direct method and the indirect method show both cash flows from investing
activities, cash flows from financing activities, schedule of noncash investing and
financing activities, and the net increase decrease subtotals for each activity area as well
as the grand total for net increase or decrease in cash.
Your spreadsheet prototype template should also include a built in way to check to see
whether or not the indirect and direct methods for cash from operations are equal. You
should also have a built in method for checking whether the cash flow total amount is
equal to the change in cash and cash equivalents on the balance sheet. Finally your
spreadsheet should include some kind of graph and also protection on the cash flow
formulas and cash flow statement cells, but not on the data input cells. It is easiest if you
put protection on last.
Once you have prepared the template OKeefe or High Tech or both use the template
to complete the cash flow statement for Instaprint Corporation data included in the cash
flow data pdf file If you have made a good template form prototype companies data,
completing the Instaprint Corporation problem should not take very long. However there
will be some changes to some formulas.
Using online course system, hand in your work by attaching your Instaprint Corporation
cash flow statement spreadsheet model and your preliminary design report files
electronically. Name the files with your last name and first initial followed by an
underscore and CF for cash flow.
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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