• Provide your calculations of the operating cash flows in a table or by attaching the MS Excel spreadsheet.
• Explain the total amount of net cash provided by operating activities in 2021 and 2020 by ABC Company.
• Explain which category generated the most cash flow in each year.
• Explain why the change in Cash (in the Total current assets on the balance sheet) is not included in the operating activities section of the ABC Company statement of cash flows.
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Balance Sheet numbers in millions 1 Assets: Cash Accounts receivable Inventory Prepaid expenses Other current assets Total current assets Other long term assets = Total Assets Property, plant, & equipment Less: accumulated depreciation Net property, plant, & equipment Liabilities: Accounts payable Accrued expenses Deferred revenue Income taxes payable Total current liabilities Long-term debt Pension liability Other long term liablities Total liabilities Common stock Retained earnings Comon shares in treasury Total equity ABC Company Year Ended 12/31/2021 Total Liabilities & Equity es $ $ $ es $ is $ is 1,407 $ 5,000 6,750 3,820 1,700 18,677 $ 25,220 14,500 10,720 Year Ended Year Ended 12/31/2020 12/31/2020 4,000 33,397 $ 6,500 6,720 2,575 $ 26,895 $ 3,500 $ 2,200 4,200 1,200 11,100 $ 2,000 4,752 (250) 6,502 $ $ 33,397 $ 336 $ 4,500 6,250 4,100 1,600 16,786 $ 23,780 13,250 10,530 3,500 30,816 $ 3,200 $ 2,100 4,100 950 10,350 $ 7,500 5,840 1,826 25,516 $ 2,000 3,500 (200) 5,300 $ 30,816 $ 548 4,200 5,985 4,200 1,200 16,133 22,100 12,130 9,970 3,500 29,603 3,100 2,100 3,935 850 9,985 8,700 5,150 1,548 25,383 2,000 2,420 (200) 4,220 29,603 Balance Sheet numbers in millions 1 Assets: Cash Accounts receivable Inventory Prepaid expenses Other current assets Total current assets Other long term assets = Total Assets Property, plant, & equipment Less: accumulated depreciation Net property, plant, & equipment Liabilities: Accounts payable Accrued expenses Deferred revenue Income taxes payable Total current liabilities Long-term debt Pension liability Other long term liablities Total liabilities Common stock Retained earnings Comon shares in treasury Total equity ABC Company Year Ended 12/31/2021 Total Liabilities & Equity es $ $ $ es $ is $ is 1,407 $ 5,000 6,750 3,820 1,700 18,677 $ 25,220 14,500 10,720 Year Ended Year Ended 12/31/2020 12/31/2020 4,000 33,397 $ 6,500 6,720 2,575 $ 26,895 $ 3,500 $ 2,200 4,200 1,200 11,100 $ 2,000 4,752 (250) 6,502 $ $ 33,397 $ 336 $ 4,500 6,250 4,100 1,600 16,786 $ 23,780 13,250 10,530 3,500 30,816 $ 3,200 $ 2,100 4,100 950 10,350 $ 7,500 5,840 1,826 25,516 $ 2,000 3,500 (200) 5,300 $ 30,816 $ 548 4,200 5,985 4,200 1,200 16,133 22,100 12,130 9,970 3,500 29,603 3,100 2,100 3,935 850 9,985 8,700 5,150 1,548 25,383 2,000 2,420 (200) 4,220 29,603

Answer rating: 100% (QA)

To calculate the operating cash flows for ABC Company we need to analyze the changes in the companys working capital accounts Heres a breakdown of the calculations for the net cash provided by operati... View the full answer