In: Finance
Category | Prior Year | Current Year |
Accounts payable | 3,119.00 | 5,956.00 |
Accounts receivable | 6,975.00 | 8,909.00 |
Accruals | 5,779.00 | 6,033.00 |
Additional paid in capital | 19,546.00 | 13,016.00 |
Cash | ??? | ??? |
Common Stock | 2,850 | 2,850 |
COGS | 22,805.00 | 18,431.00 |
Current portion long-term debt | 500 | 500 |
Depreciation expense | 1,049.00 | 1,025.00 |
Interest expense | 1,262.00 | 1,122.00 |
Inventories | 3,074.00 | 6,738.00 |
Long-term debt | 16,942.00 | 22,407.00 |
Net fixed assets | 75,935.00 | 73,976.00 |
Notes payable | 4,021.00 | 6,509.00 |
Operating expenses (excl. depr.) | 19,950 | 20,000 |
Retained earnings | 35,600.00 | 34,487.00 |
Sales | 46,360 | 45,961.00 |
Taxes | 350 | 920 |
What is the firm's cash flow from financing?
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#2
Category | Prior Year | Current Year |
Accounts payable | 3,119.00 | 5,956.00 |
Accounts receivable | 6,975.00 | 8,909.00 |
Accruals | 5,779.00 | 6,033.00 |
Additional paid in capital | 19,546.00 | 13,016.00 |
Cash | ??? | ??? |
Common Stock | 2,850 | 2,850 |
COGS | 22,805.00 | 18,431.00 |
Current portion long-term debt | 500 | 500 |
Depreciation expense | 1,049.00 | 1,025.00 |
Interest expense | 1,262.00 | 1,122.00 |
Inventories | 3,074.00 | 6,738.00 |
Long-term debt | 16,942.00 | 22,407.00 |
Net fixed assets | 75,935.00 | 73,976.00 |
Notes payable | 4,021.00 | 6,509.00 |
Operating expenses (excl. depr.) | 19,950 | 20,000 |
Retained earnings | 35,600.00 | 34,487.00 |
Sales | 46,360 | 45,961.00 |
Taxes | 350 | 920 |
What is the firm's cash flow from investing?
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Answer format: Number: Round to: 0 decimal places
#1 Cash Flow from Financing
Cash generated or spent on financing activities shows the net cash flows involved in funding the company's operations. Financing activities include:
In the given question, There are three items of finance:
1. Current portion Long term debt- 500 which s constant in both the years showing no effect on cashflow
2. Interest expense - The repayment of the interest expense is not given, hence assumed as included in the long term loan.
3. Long term debt:
Opening balance for Current year | 16,942.00 | |
Add: Interest of current year | 1,122.00 | |
18,064.00 | ||
Closing balance for the current year | 22,407.00 | |
Net cash inflow | 4,343.00 | |
Since there is an increase in Long term debt amount, it looks like the organisation have raised a long term loan | ||
The difference can be the net amount received i.e., the repayment if any made by the organisation and loan raised |
Answer: From the above, the Net cashflow from financing activity can be 4343.
#2 Cash Flow from Investing
Cash flows from investing activities provides an account of cash used in the purchase of non-current assets–or long-term assets– that will deliver value in the future.
Below are a few examples of cash flows from investing activities along with whether the items generate negative or positive cash flow.
In the given question, There are two items of investing activities
1. Additions paid in capital - Assuming that the current year additions given are the amount paid during current year doesnot include any amount from previous year -13016 is inflow
2. Fixed assets:
Particulars | Amount |
Opening net fixed assets | 75,935.00 |
Less: depriciation during current year | 1,025.00 |
74,910.00 | |
Closing net fixed asseets | 73,976.00 |
Net cash inflow | 934.00 |
Since the opening net fixed assets after considering current year depreciation is more than the Closing net fixed asset, it seems like there is sale of fixed asset.
Answer: Total Cashflow from the investing activties - Additions paid in capital -13016 (Inflow)
Fixed assets - 934 (Inflow)
Total = 13950