Question: Need help answering these questions. What we do not see in the videos is that Kevin O'Leary asked Traci and Dani for some select financial
Need help answering these questions.
What we do not see in the videos is that Kevin O'Leary asked Traci and Dani for some select financial information about Wicked Good Cupcakes. Consult the table below for the next set of questions:
Net sales
Cost of goods sold Depreciation
Net Income
Finished goods inventory Accounts receivable Accounts payable
Net fixed assets
Year-end cash balance
2010
$69,400 $45,000 $5,100 $13,000 $3,900 $5,700 $3,900 $40,400 $8,600
2011
$78,200 $50,200 $6,100 $14,200 $2,900 $8,700 $4,400 $48,200 $13,500
Ignore data that is not presented above (changes in bad debt reserves, asset sales or write-offs, no financing cash flows, etc.). From the above data answer the following:
1. During 2011 how much cash did Wicked Good Cupcakes collect from sales?
2. During 2011 what was the cost of goods produced by the company?
3. Assuming that Wicked Good Cupcakes neither sold/salvaged assets
during the year, what were the capital expenses during 2011?
4. Assuming that there were no financing cash flows during 2011, using the
information from above, what was Wicked Good Cupcakes cash flow from
operations in 2011?
5. Does your analysis of these selected financial data justify OLearys
interest and partnership in Wicked Good Cupcakes? Explain.
6. Based on the analysis above, if you were a Shark Tank investor, what would your offer be? Explain the rationale for your offer.
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