Statement of Cash Flows: Indirect Method, Working Capital & Free Cash Flow

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Sort Fenmoor Outdoor Co.'s FY2026 cash transactions into the three sections of the statement of cash flows with a lookup table and total each section with SUMIF.
• Start Fenmoor Outdoor Co.'s operating section from net income and correct it for depreciation, amortisation, share-based pay and the gain on an equipment sale.
• Compare Fenmoor Outdoor Co.'s balance sheets at 31 Dec 2025 and 2026, turn each working capital change into its cash effect with the right sign and finish operating cash flow.
• Back out Fenmoor Outdoor Co.'s capital expenditure and the accumulated depreciation on sold vans from the PP&E roll-forward, check the gain on sale against the income statement and build the investing section.
• Reconstruct Fenmoor Outdoor Co.'s financing cash flows from balance sheet movements: new borrowing, repayments, dividends actually paid, the buyback and the share issue that was not one.
• Rebuild Fenmoor Outdoor Co.'s operating cash flow line by line (customers, suppliers, operating expenses, interest, taxes) and prove it equals the indirect method result.
• Calculate Fenmoor Outdoor Co.'s free cash flow three ways for FY2024–FY2026 and its cash conversion, and see who each measure belongs to.
• Total Fenmoor Outdoor Co.'s bridge from net income to operating cash flow, judge its earnings quality with two ratios and draw the bridge as a waterfall chart.