Preparing a Balance Sheet

• Using the Financial Statement Excel Template, which includes the needed data, prepare a balance sheet for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
• Using the Business Report Template, how would you interpret the quality of the balance sheet? In your response, be sure to address whether there is excessive leverage, enough cash to make payroll and/or buy equipment, et cetera. (75-150 words, or 1-2 paragraphs)
• Based on your interpretation of the balance sheet, would you recommend lending to the company? Explain why or why not, including any potential risks. (75-150 words, or 1-2 paragraphs)

Part 2: Building an Income Statement

• Using the Financial Statement Excel Template, which includes the needed data, prepare an income statement for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
• Using the Business Report Template, address the following using Medi-Supply's income statement:
• Interpret the quality of the income statement for this company. Is the income statement improving or deteriorating over time? Explain your answer, including why you reached your conclusion. (75-150 words, or 1-2 paragraphs)
• Describe whether or not this company is profitable. If the company is unprofitable, explain if it is growing fast enough for sales to outpace expenses. (75 words, or 1 paragraph)
• Based on their income statement, would you invest in the company? (75 words, or 1 paragraph)

Part 3: Calculating the Operating Cash Flow

• Using the Financial Statement Excel Template, which includes the needed data, compute the operating cash flow for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
• Using the Business Report Template, address the following using Medi-Supply's operating cash flow:
• Interpret the quality of the operating cash flow for this company. Is the operating cash flow improving or deteriorating over time? Explain your answer, as well as why you reached your conclusion. (75-150 words, or 1-2 paragraphs)
• Describe whether or not the company generates positive cash flow from operations. (75 words, or 1 paragraph)
• Based on the quality of their cash flow, would you invest in the company? (75 words, or 1 paragraph)

GIVEN DATA:

2016 2017

Cost of Goods Sold 201,943 252,768

Cash 30,629 32,567

Depreciation 56,876 64,826

Interest expense 13,130 14,925

Selling & Administrative Expenses 43,130 53,753

Accounts Payable 52,910 58,998

Net Fixed Assets 262,617 314,625

Sales 403,456 485,832

Accounts Receivable 21,524 27,652

Notes Payable 24,308 26,915

Long-term Debt 129,342 144,570

Inventory 45,785 58,425

Tax Rate 35% 35%

Dividend Payout % 50% 50%