An analyst has gathered the following information about a company Income Statement for the Year 2004...

An analyst has gathered the following information about a company

Income Statement for the Year 2004
Sales                                                      $1,500
Expenses
COGS                        $1,300
Depreciation                     30
lnt Expenses                     40
Total expenses                                           1,370
Income from cont op                                     130
Gain on sale                                                   30
Income before tax                                         160
Income tax                                                     64
Net Income                                                   $96

Additional Information:

Dividends paid                                                                                                 $30
Common stock sold                                                                                            20
Equipment purchased                                                                                         50
Bonds issued                                                                                                      80
Fixed asset sold for (original cost of $100 with accumulated depreciation of $70)     60
Accounts receivable decreased by                                                                        30
Inventory decreased by                                                                                       20
Accounts payable increased by                                                                             20
Wages payable decreased by                                                                               10

What is the cash flow from operations?

1. $170

2. $156

3. $135

Expert Solution

Cash frow from operations include cash flow from operating activities of the business

Cash flow from operations = Net Income + Depreciation – Gain on Sale + Decrease in accounts receivables + Decrease in Inventory + Increase in accounts payable – Decrease in wages payable

= 96+30-30+30+20+20-10

= $156

i.e. 2)

jeff jeffy answered 2 years ago

NOTE PLEASE I WANT ALL THE SUBPARTS** An analyst has gathered the following information about a...

NOTE PLEASE I WANT ALL THE SUBPARTS** An analyst has gathered the following information about a project: • Cost: $10,000 • Annual cash inflow: $4,000 • Life: 4 years • Cost of capital: 12% 22. Which of the following statements about the project is least accurate? * A. The discounted payback period is 3.5 years. B. The IRR of the project is 21.9%; accept the project. C. The NPV of the project is +$2,149; accept the project. D. None of...

As an analyst, you have gathered the following information on a company you are tracking. The...

As an analyst, you have gathered the following information on a company you are tracking. The current dividend is $0.75. Dividends are expected to grow at a rate of 12% over the next three years, decline linearly to 4% over the next six years, and then remain at a long-term equilibrium growth rate of 4% in perpetuity. The required return is 9%. The value of the company is closest to: a) $20.25. b) $23.2056 c) $78.25 d) $15.76 e)...

Below is the income statement of a publicly-traded biotech company from 2004 until 2007: Year 2004...

Below is the income statement of a publicly-traded biotech company from 2004 until 2007: Year 2004 2005 2006 2007 Revenue $0 $0 $0 $0 Expenses $0.2 million $0.7 million $2.2 million $4.8 million The company’s stock was trading for $2 in 2004 and is now trading for $7. Are investors irrational? Should the stock be sold short? Is it possible for a company in the biotech business to be worth something even though it has no current sales? What can...

Overton Company has gathered the following information.

Overton Company has gathered the following information.Units in beginning work in process21,100Units started into production184,900Units in ending work in process24,700Percent complete in ending work in process: Conversion costs60% Materials100%Costs incurred: Direct materials$103,000 Direct labor$263,576 Overhead$187,500Compute equivalent units of production for materials and for conversion costs.MaterialsConversion CostsThe equivalent units of production Determine the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)MaterialsConversion CostsUnit costs$$ Show the assignment of costs to units transferred out and in process.Transferred out$Ending work in process$

The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...

The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,513,000 Cost of goods sold 741,370 Gross profit 771,630 Operating expenses Salaries expense $ 207,281 Depreciation expense 36,312 Rent expense 40,851 Amortization expenses—Patents 4,539 Utilities expense 16,643 305,626 466,004 Gain on sale of equipment 6,052 Net income $ 472,056 Accounts receivable $ 18,700 increase Accounts payable $ 12,525 decrease Inventory 34,225 increase Salaries payable 1,250 decrease Prepare the operating...

Use the following information to answer Questions 9 and 10: An analyst gathered the following information...

Use the following information to answer Questions 9 and 10: An analyst gathered the following information regarding Beta Corporation: •Current dividend per share = $2.18 •Next year's expected dividend growth rate of 30% is expected to decline linearly over the following 8 years to a long-term constant growth rate of 6%. •Required rate of return on the company's stock is 11%. Question: The value of the company's stock today is closest to: Select one: a. $41.86 b. $98.54 c. $88.07...

Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year...

Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue $970,400 Operating expenses, excluding depreciation $624,100 Depreciation expense 55,400 Loss on disposal of plant assets 25,200 704,700 Income before income taxes 265,700 Income tax expense 39,100 Net income $226,600 Zumbrunn’s balance sheets contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable $75,200 $59,800 Accounts payable 40,400 28,900 Income taxes payable 13,000 6,400 Accounts payable...

The financial analyst at Company ABC gathered cost information for one element of the cost of...

The financial analyst at Company ABC gathered cost information for one element of the cost of its high performance widgets. In January, when ABC made 100 units, the cost was $8,000. In February when ABC made 140 units, the cost was $10,560. Which of the following is true? a. The cost is a fixed cost. b. The cost is a variable cost c. The cost is a mixed cost. d. The cost was a fixed cost in January and a...

Gulf Company has gathered the following information on quality costs for the year 2017: Quality engineering...

Gulf Company has gathered the following information on quality costs for the year 2017: Quality engineering of products $20,000 Quality training of employees $2,000 Net cost of scrap $30,000 Rework labor $4,500 Warranty repairs $100,000 Product recalls $200,000 Liability arising from defective products $1,000,000 Maintenance of test equipment $44,000 Quality improvement projects $55,000 Setups for testing $3,000 Supplies used in testing $5,500 Downtime caused by defects $70,000 Disposal of defective products $80,000 Assume that year sales totaled $5,000,000 Required: a....

Grosbeck Cattle Company has gathered the following information about operations for the past three years. Mathew...

Grosbeck Cattle Company has gathered the following information about operations for the past three years. Mathew Grosbeck has been expanding herd size and is frustrated that profits have not shown consistent growth. Available 20 Year 1 Year 2 Year 3 Your Score Cow herd size 120 140 180 Revenues from sale of calves $ 102,000 $ 119,000 $ 153,000 Feed 18,000 21,000 27,000 Labor (1 cowboy per 120 cows) 24,000 48,000 48,000 Cow depreciation...

Question