Given the following information related to net changes in working capital accounts for the Player Company:...

Given the following information related to net changes in working capital accounts for the Player Company:

	Increase	Decrease
Cash	$15,000
Trade accounts receivable (net)	8,400
Inventories		$16,200
Salaries payable (operating)		6,000
Trade accounts payable	11,000

Cash Provided by Operating Activities is $100,000. The company also indicated that depreciation expense for the year was $14,200.

Net Income is:

Select one:

a. $73,000

b. $87,200

c. $118,200

d. $103,000

e. $103,200

Expert Solution

Answer: a. $73,000

Calculation:

Particulars	$
Cash Provided by Operating Activities	100,000
Depreciation Expenses	(14,200)
Increase in Trade accounts receivable (net)	8,400
Decrease in Inventories	(16,200)
Decrease in Salaries payable (Operating)	6,000
Increase in Trade accounts payable	(11,000)
Net Income	73,000

All the best...

ekkarill92 answered 3 years ago

Calculate the amount of the change in net working capital given the following information: The company...

Calculate the amount of the change in net working capital given the following information: The company had current assets of $77,000 and current liabilities of $88,000. One year later, the current assets are $99,000 and the current liabilities are $91,000. The depreciation for the period is $8,800 and the interest paid is $7,700.

A- (Calculating changes in net operating working capital) A company is introducing a new product and...

A- (Calculating changes in net operating working capital) A company is introducing a new product and has an expected change in net operating income of $790,000. The company has a 33% marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year 1: without the project with the project accounts receivable $53000 $91000 inventory $97000 $176000 accounts payable $75000 $118000 the free cash flow of the project...

Define each of the following terms: Working capital – Net working capital – Net operating working...

Define each of the following terms: Working capital – Net working capital – Net operating working capital – Explain the following operating current asset investment policies. Relaxed policy – Restricted policy – Moderate policy –

What's the difference between working capital and net working capital? Between net working capital and net...

What's the difference between working capital and net working capital? Between net working capital and net operating working capital?

You find the following financial information about a company: net working capital = $1,032; fixed assets...

You find the following financial information about a company: net working capital = $1,032; fixed assets = $6,089; total assets = $8,542; and long-term debt = $4,567. What are the company's total liabilities?

What is the definition of net working capital? Net working capital is the difference between a...

What is the definition of net working capital? Net working capital is the difference between a firm's current assets and current liabilities. Net working capital is the sum of a firm's cash and marketable securities accounts. Net working capital is the value of a firm's assets that can be converted into cash in one year or less. Net working capital is the amount of cash a firm has on hand as of a specific date.

Define working capital, net working capital, and working capital management. What is the role of the...

Define working capital, net working capital, and working capital management. What is the role of the manager in working capital management? What are marketable securities? What are the two main types of marketable securities?

s From the following information given below: Prepare the Statement of Changes in Plan Net Positon....

s From the following information given below: Prepare the Statement of Changes in Plan Net Positon. Read the table carefully, choose the items as per your requirement. Particulars Amount Particulars Amount Contributions deductions employer 250,000 plan members 250,000 administrative cost 35,000 members of S. organization 350,000 salary for the staff 375,000 executive plan members 450,000 building repair 39,000 investment income motor vehicle maintenance 40,000 interest Income 50,000 depreciation on equipment 25,000 Net appreciation in fair...

(Calculating changes in net working capital) Duncan Motors is introducing a new product which it expects...

(Calculating changes in net working capital) Duncan Motors is introducing a new product which it expects will increase its operating profit by $ 290,000. Duncan Motors has a 30 30% marginal tax rate. This project will also produce $ 47,000 of depreciation per year, and will cause the following changes in year 1: Without the project With the project Accounts receivable $ 28,000 $27,000 Inventory 26,000 . 42,000 Accounts payable 49,000 84,000 What is the project's free cash flow in...

Calculate the net impact on cash given the following information: decrease in accounts receivable= $30; decrease...

Calculate the net impact on cash given the following information: decrease in accounts receivable= $30; decrease in inventory= $45; net fixed asset Disposals= $75; decrease in accounts payable= $27; increase in notes payable= $30; increase in long-term debt= $105; decrease in retained earnings= $18; decrease in common stock= $600. a. $470 net addition to cash b. $120 net deduction from cash c. $360 net addition to cash d. $120 net addition to cash e. $360 net deduction from cash

Question