Question

The following information is for Casper Company. Depreciation expense..................................... $150 Book value per share................................... $17.00 Number of shares outstanding............. 75 shares Increase in accounts payable............................. 48 Current ratio...................................................... 2.00 Earnings per share.......................................... $4.00 Increase in inventory........................................... 55 Net income.......................................................... 310 Decrease in accounts receivable........................ 70 Price-to-book ratio............................................. 2.20 Using this information, compute Casper Company’s OPERATING CASH FLOW. Write the dollar amount of your answer.

Answer 1

Net Cash Inflow from Operating Activities

$          523.00

Working:

Operating Cash Flow
Particulars	Amount ($)
Net Income	$          310.00
Add back: Depreciation [Non Cash Expenditure]	$          150.00
Operating Cash Flow before working capital changes	$          460.00
Increase in Accounts Payable	$            48.00
Decrease in Inventory	$          -55.00
Increase in Accounts Receivables	$            70.00
Net Cash Inflow from Operating Activities	$          523.00