Adjust the Cash Balance We obtain the following 2018 forecasts of selected financial statement line items for Journey Company. $ millions 2017 Actual 2018 Est. Net Sales $747,442 $779,327 Marketable securities 67,096 62,096 Long-term debt 346,558 308,437 Treasury stock (deducted from equity) 51,174 51,174 Cash generated by operations 57,918 Cash used for investing (15,130) Cash used for financing (54,438) Total net change in cash (11,650) Cash at beginning of period 51,141 Cash at end of period $39,491 a. Does forecasted cash deviate from the normal level for this company? Calculate the company's normal cash level as a percentage of sales. Round answer to one decimal place. Answer% Using the rounded answer above, compute what should be the normal cash balance for FY2018. Round answer to the nearest million. million C. Complete the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance. Use negative signs with answers, when appropriate. Cash generated by operations Answer Cash used for investing Answer Cash used for financing Answer Total change in cash Answer Cash at beginning of period Answer Cash at end of period Answer e. Complete the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance. Use negative signs with answers, when appropriate. Cash generated by operations Answer Cash used for investing Answer Cash used for financing Answer Total change in cash Answer Cash at beginning of period Answer Cash at end of period Answer

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 18E: Spreadsheet and Statement The following 2019 information is available for Stewart Company: Partial...

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Adjust the Cash Balance
We obtain the following 2018 forecasts of selected financial statement line items for Journey Company.

$ millions	2017 Actual	2018 Est.
Net Sales	$747,442	$779,327
Marketable securities	67,096	62,096
Long-term debt	346,558	308,437
Treasury stock (deducted from equity)	51,174	51,174
Cash generated by operations		57,918
Cash used for investing		(15,130)
Cash used for financing		(54,438)
Total net change in cash		(11,650)
Cash at beginning of period		51,141
Cash at end of period		$39,491

a. Does forecasted cash deviate from the normal level for this company?
Calculate the company's normal cash level as a percentage of sales.
Round answer to one decimal place.
Answer%

Using the rounded answer above, compute what should be the normal cash balance for FY2018.
Round answer to the nearest million.

million

C. Complete the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance.

Use negative signs with answers, when appropriate.

Cash generated by operations	Answer
Cash used for investing	Answer
Cash used for financing	Answer
Total change in cash	Answer
Cash at beginning of period	Answer
Cash at end of period	Answer

e. Complete the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance.

Use negative signs with answers, when appropriate.

Cash generated by operations	Answer
Cash used for investing	Answer
Cash used for financing	Answer
Total change in cash	Answer
Cash at beginning of period	Answer
Cash at end of period	Answer

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