1. Rick’s Razors Inc. has a net income of $90,000 this year. They depreciated $55,000 in...

1. Rick’s Razors Inc. has a net income of $90,000 this year. They depreciated $55,000 in fixed assets, paid a $43,000 dividend, increased inventory by $30,000, and reduced long-term debt by $56,000. Receivables increase by $55,000 and payables increased by $15,000. If their cash balance at the beginning of the year was $32,000, what was their cash balance at the end of the year?

Expert Solution

Cash Balance for the year=Net income+depreciation-Dividend paid-increased inventory-reduced long term debt-increase in receiavbles+increase in payables

Ngetaive (-) sign is cash outflow

Positive (+) sign is cash inflow

Cash Balance for the year=90000+55000-43000-30000-56000-55000+15000=-24,000

Cash Balance at the end of the year=Begining of year cash balance+Cash Balance for the year=32,000-24,000=8,000

Therefore, Cash Balance at the end of the year=$8,000

jeff jeffy answered 2 years ago

Small Company reported 2017 net income of $300,000 and paid dividends of $90,000 during the year....

Small Company reported 2017 net income of $300,000 and paid dividends of $90,000 during the year. Parker Inc. acquired 20% of Small's outstanding voting stock on January 1, 2017 for $630,000. At December 31, 2017, Parker determined the fair value of the shares in small to be $615,000. Parker reported operating income of $540,000. instructions: Compute Parker's net income for 2017 assuming it uses the following methods to account for its investment. a. equity method in accounting for its investment...

a.) Star Inc. has Year 1 revenues of $80 million, net income of $9 million, assets...

a.) Star Inc. has Year 1 revenues of $80 million, net income of $9 million, assets of $65 million, and equity of $40 million, as well as Year 2 revenues of $87 million, net income of $22 million, assets of $70 million, and equity of $50 million. Calculate Star’s return on equity (ROE) for each year based on the DuPont method and compare it with a direct ROE measure. Next, explain why the firm’s ROE changed between Year 1 and...

Online Network Inc. has a net income of $500,000 in the current fiscal year. There are...

Online Network Inc. has a net income of $500,000 in the current fiscal year. There are 100,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $1.2 million. The $1.2 million is represented by 1,200 different $1,000 bonds. Each $1,000 bond pays 4 percent interest. The conversion ratio is 20. The firm is in a 20 percent tax bracket. . Compute basic earnings per share. Compute diluted earnings per share

Tiffany’s Pet Store Inc. again has net income for the year of $1,000,000, and currently has...

Tiffany’s Pet Store Inc. again has net income for the year of $1,000,000, and currently has 100,000 shares outstanding. Knowing this what is the company’s earnings per share (EPS)?

The net income reported on the income statement of CamilloX Inc. for the current year was...

The net income reported on the income statement of CamilloX Inc. for the current year was $150,000. Depreciation recorded on equipment and building amounted to $45,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Account End of Year Beginning of Year Cash 42,875 36,250 Trade Receivables (net) 147,500 137,500 Inventories 109,375 93,750 Prepaid Expenses 9,250 11,875 Accounts Payable 57,000 40,000 Salaries Payable 7,625 10,625 Dividends Payable...

Projects X has the following expected net cash flows: Year Project X 0 $-160,000 1 90,000...

Projects X has the following expected net cash flows: Year Project X 0 $-160,000 1 90,000 2 60,000 3 35,000 4 30,000 If the required rate of return is 12 percent, what is the net present value for the Project X? a.$ 18,578 b$ 16,533 c$ 10,250 d$ 12,167 e$ 20,968

In 2017 Michael has $90,000 in salary from his full-time job and net self-employment income of...

In 2017 Michael has $90,000 in salary from his full-time job and net self-employment income of $40,000 from his sole proprietorship. What is his self-employment tax? How much of it can he deduct in arriving at his AGI? Show and label calculations.

Year cost to be depreciated depreciation exp. per year Accumulated depreciation net remaining undepreciated cost 1...

Year cost to be depreciated depreciation exp. per year Accumulated depreciation net remaining undepreciated cost 1 2 3 4 5 6 7 8 9 10 Complete the following: Depreciation expense per year, accumulated depreciation year, and net remaining undepreciated cost. Assumptions are as follows: Cost to be depreciated: 20,000 Estimated useful life of equipment: 10 years Year

Cliff Corp. reported net income of $90,000, a profit margin of 8.7%, a debt-to-equity ratio of...

Cliff Corp. reported net income of $90,000, a profit margin of 8.7%, a debt-to-equity ratio of 0.60 and total asset turnover of 2.2. What is Cliff Corp.’s ROA? Select one: a. 8.70% b. 18.92% c. 19.14% d. 22.12% e. None of the above.

TSW Inc. had the following data for last year: Net income = $800; Net operating profit...

TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?

Question