Hampton Industries had $40,000 in cash at year-end 2017 and $14,000 in cash at year-end 2018....

Hampton Industries had $40,000 in cash at year-end 2017 and $14,000 in cash at year-end 2018. The firm invested in property, plant, and equipment totaling $290,000. Cash flow from financing activities totaled +$160,000. Round your answers to the nearest dollar, if necessary.

What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign.
$
If accruals increased by $20,000, receivables and inventories increased by $165,000, and depreciation and amortization totaled $47,000, what was the firm's net income?
$

Can you please explain how you got the answer please. Thank you

Solutions

Expert Solution

Ans a.	Change in Overall Cash in 2018 = Cash flows from Operating Activities + Cash flow from Investment Activity + Cash flow from financing activities

	Cash outflow due to investment in Property, Plant and Equipment	-290000

	Cash flow from Financing Activities	160000

	Opening Cash in 2018	40000

	Closing Cash in 2018	14000

	Change in Overall Cash in 2018 Closing Cash Less Opening Cash	-26000

	Cash flow from Operating Activities= Change in Overall Cash in 2018-Cash flow from Investment Activity-Cash flow from Financing Activities	104000

Ans b.	Cash flow from Operating Activities	104000

	Depreciation and Amortisation	47000

	Changes in Working Capital

i	Increase in Receivables and Inventories	-165000
ii	Increase in Accruals	20000
	Working Capital Changes (i+ii)	-145000

	Cash flow from Operating Activities = Net Income + Depreciation + Changes in Working Capital
	Net Income = Cash flow from Operating Activities - Depreciation - Changes in Working Capital
	Net Income	202000

We got both the answers from the Cash flows being calculated by indirect method. The complete working has been made through detailed formula. In case of any confusion do drop your comment in the comment below will surely help you.

If you are satisfied with the Answers and Workings kindly give a thumbs up or else thumbs down.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Hampton Industries had $68,000 in cash at year-end 2017 and $15,000 in cash at year-end 2018....

Hampton Industries had $68,000 in cash at year-end 2017 and $15,000 in cash at year-end 2018. The firm invested in property, plant, and equipment totaling $220,000. Cash flow from financing activities totaled +$240,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign. $ If accruals increased by $35,000, receivables and inventories increased by $185,000, and depreciation and amortization totaled $5,000, what...

Hampton Industries had $57,000 in cash at year-end 2017 and $20,000 in cash at year-end 2018....

Hampton Industries had $57,000 in cash at year-end 2017 and $20,000 in cash at year-end 2018. The firm invested in property, plant, and equipment totaling $140,000. Cash flow from financing activities totaled +$230,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign. $ If accruals increased by $15,000, receivables and inventories increased by $195,000, and depreciation and amortization totaled $25,000, what...

STATEMENT OF CASH FLOWS Hampton Industries had $53,000 in cash at year-end 2015 and $14,000 in...

STATEMENT OF CASH FLOWS Hampton Industries had $53,000 in cash at year-end 2015 and $14,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $280,000. Cash flow from financing activities totaled +$190,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Enter cash outflows with a minus sign. $ If accruals increased by $15,000, receivables and inventories increased by $165,000, and depreciation and amortization totaled $41,000, what...

Hampton Industries had $71,000 in cash at year-end 2018 and $22,000 in cash at year-end 2019....

Hampton Industries had $71,000 in cash at year-end 2018 and $22,000 in cash at year-end 2019. The firm invested in property, plant, and equipment totaling $280,000 — the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$240,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign. $ ...

Hampton Industries had $47,000 in cash at year-end 2015 and $10,000 in cash at year-end 2016....

Hampton Industries had $47,000 in cash at year-end 2015 and $10,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $270,000. Cash flow from financing activities totaled +$150,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Enter cash outflows with a minus sign. $ If accruals increased by $15,000, receivables and inventories increased by $145,000, and depreciation and amortization totaled $27,000, what was the firm's net...

12. Problem 3.12 (Statement of Cash Flows) eBook Hampton Industries had $70,000 in cash at year-end 2018...

12. Problem 3.12 (Statement of Cash Flows) eBook Hampton Industries had $70,000 in cash at year-end 2018 and $28,000 in cash at year-end 2019. The firm invested in property, plant, and equipment totaling $300,000 — the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$210,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Cash outflow, if any, should...

STATEMENT OF CASH FLOWS Hampton Industries had $55,000 in cash at year-end 2015 and $16,000 in...

STATEMENT OF CASH FLOWS Hampton Industries had $55,000 in cash at year-end 2015 and $16,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $280,000. Cash flow from financing activities totaled +$180,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Enter cash outflows with a minus sign. $ If accruals increased by $5,000, receivables and inventories increased by $200,000, and depreciation and amortization totaled $75,000, what...

Below are the 2018 and 2019 year-end balance sheets for Tran Enterprises: Assets: 2018 2017 Cash...

Below are the 2018 and 2019 year-end balance sheets for Tran Enterprises: Assets: 2018 2017 Cash $ 200,000 $ 170,000 Accounts receivable 864,000 700,000 Inventories 2,000,000 1,400,000 Total current assets $3,064,000 $2,270,000 Net fixed assets 6,000,000 5,600,000 Total assets $9,064,000 $7,870,000 Liabilities and equity: Accounts payable $1,400,000 $1,090,000 Notes payable to bank 1,600,000 1,800,000 Total current liabilities $3,000,000 $2,890,000 Long-term debt 2,400,000 2,400,000 Common stock 3,000,000 2,000,000 Retained earnings 664,000 580,000 Total common equity $3,664,000 $2,580,000 Total liabilities and equity...

Use the following information to answer the next Two questions : 2018 2017 Cash 15,000 14,000...

Use the following information to answer the next Two questions : 2018 2017 Cash 15,000 14,000 A/R 24,000 25,000 Inventory 79,000 78,000 Prepaid Insurance 5,000 4,000 Preoperty plant, & Equipment 35,000 30,000 Accumlated Depreciation (7,000) (5,000) Total Assets 151,000 146,000 Account Payable 6,000 9,000 Bonds Payable (mature in yr 2022 45,000 60,000 Common Stock 70,000 60,000 Retaind Earnings 30,000 17,000 Total Liabilities & Equity 151,000 146,000 Sunny Company had the following comparative balance sheet information for 2018, 2017: Sunny reported...

T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000...

T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000 Marketable securities 6,000 6,200 Accounts receivable 42,000 33,000 Inventory 51,000 84,000 Prepaid rent 1,200 1,100 Total current assets $115,200 $138,300 Net plant and equipment $286,000 $270,000 Total assets $401,200 $408,300 Liabilities and Equity 2017 2018 Accounts payable $48,000 $57,000 Accruals 6,000 5,000 Notes payable 15,000 13,000 Total current liabilities $69,000 $75,000 Long-term debt $160,000 $150,000 Common stockholders' equity $172,200 $183,300 Total liabilities and equity...

Subjects