Question
In: Accounting
Based on the following information from Finco’s Financial statements, confirm that the Cash Flow Identity holds....
Based on the following information from Finco’s Financial statements, confirm that the Cash Flow Identity holds.
Balance Sheet
Current Accounts
◦ 2018: CA = 1500; CL = 1300
◦ 2019: CA = 2000; CL = 1700
Fixed Assets
◦ 2018: NFA = 3000; 2019: NFA = 4000
LT Liabilities and Equity
◦ 2018: LTD = 2200; Common Equity = 500; RE = 500
◦ 2019: LTD = 2800; Common Equity = 750; RE = 750
Income Statement
◦ EBIT = 2700; Interest Expense = 200; Taxes = 1000; Dividends = 1250
◦ Depreciation = 300
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Cash Flow from Assets (also known as FCF), Cash Flow Identity/Equation, Change in NWC, and Financial Leverage.
Define these business finance terms in your own words and then
give a real world example of each.Cash Flow from Assets (also known as FCF), Cash Flow
Identity/Equation, Change in NWC, and Financial Leverage.
Cash flow from assets. Use the data from the following financial statements in the popup window,...
Cash flow from assets. Use the data from the following financial
statements in the popup window,
LOADING...
. The company paid interest expense of
$ 17 comma 500$17,500
for
20172017
and had an overall tax rate of
40 %40%
for
20172017.
Find the cash flow from assets for
20172017,
and break it into its three parts: operating cash flow,
capital spending, and change in net working capital.
The operating cash flow is
$nothing.
Partial Income Statement Year Ending 2017
Sales...
Cash flow from assets. Use the data from the following financial statements in the popup window,...
Cash flow from assets. Use the data from the following financial
statements in the popup window, LOADING.... The company paid
interest expense of $ 17 comma 300 for 2017 and had an overall tax
rate of 40 % for 2017. Find the cash flow from assets for 2017,
and break it into its three parts: operating cash flow, capital
spending, and change in net working capital.
Partial Income Statement Year Ending 2017
Sales revenue
$350,100
Cost of goods sold
$142,000...
The Statement of Cash Flow The following cash flow information was taken from The General Electric...
The Statement of Cash Flow The following cash flow information
was taken from The General Electric Company (GE) annual report.
Compute the missing values in the table (amounts are in millions).
Year 3 Year 2 Year 1 Cash, beginning balance $Answer 91,968 $75,984
$Answer 98,508 Cash flow from operating activities 225,846 218,904
175,374 Cash flow from investing activities Answer (283,722)
(230,484) (131,058) Cash flow from financing activities (36,714)
Answer (27,564) (21,792) Cash, ending balance $70,806 $91,968
$Answer 75,984
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that...
Calculate free cash flow for 2017 for Monarch Textiles, Inc.,
based on the financial information that follows. Assume that all
current liabilities are non-interest-bearing liabilities and that
no fixed assets were sold or disposed of during 2017. (Enter your
answer in 1000s.)
income statement
2017
sales
1640
cost of sales
880
operating expenses
190
depreciation
86
interest expense
50
earnings befor taxes
434
tax
173.6
net income
260.4
selected balance sheet items
2016
2017
current assets
40
670
net fixed...
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that...
Calculate free cash flow for 2017 for Monarch Textiles, Inc.,
based on the financial information that follows. Assume that all
current liabilities are non-interest-bearing liabilities and that
no fixed assets were sold or disposed of during 2017.
(Enter your answer in 1000s.)
Monarch Textiles, Inc. ($ thousands)
Income statement
Selected balance sheet items
2017
2016
2017
Sales
1,610
Current assets
470
655
Cost of sales
870
Net fixed assets
168
336
Operating expenses
185
Current liabilities
285
365
Depreciation
84...
Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that...
Calculate free cash flow for 2017 for Monarch Textiles, Inc.,
based on the financial information that follows. Assume that all
current liabilities are non-interest-bearing liabilities and that
no fixed assets were sold or disposed of during 2017. (Enter your
answer in 1000s.) Monarch Textiles, Inc. ($ thousands) Income
statement Selected balance sheet items 2017 2016 2017 Sales 1,430
Current assets 410 565 Cost of sales 810 Net fixed assets 144 288
Operating expenses 155 Current liabilities 255 335 Depreciation 72...
Given the financial statement, calculate the Cash flow identity. Report the results for year 2013 as...
Given the financial statement, calculate the Cash flow
identity.
Report the results for year 2013 as follows:
Operating Cash Flow = ??
Net Capital Spending = ??
Change in NOWC = ??
Cash Flow from Asset = ??
Cash Flow to Creditors = ??
Cash Flow to Shareholders = ??
1
Income statement (in $ Thousands)
2012
2013
2
3
Net sales
500.00
600.00
4
Less: cogs
300.00
360.00
5
Gross profit
200.00
240.00
6
Less: operating exp
75.00
80.00...
Question (i) The following information is extracted from the financial statements of XERO Limited: Cash $677,423...
Question
(i) The following information is extracted from the financial
statements of XERO
Limited:
Cash $677,423 Accounts Payable $1,721,669
Accounts Receivable $1,845,113 Notes Payable $2,113,345
Inventories $1,312,478
Total Current Assets $3,835,014 Total Current Liabilities
$3,835,014
Net Sales $9,912,332
Cost $5,947,399
(b) What is the operating cycle for XERO Limited?
(c) What can you say about XERO Limited’s accounts receivable
and inventory
management if it is known that the industry average operating cycle
is 72 days?
(d) Briefly explain what you...
i) The following information is extracted from the financial statements of XERO Limited: Cash $677,423 Accounts...
i) The following information is extracted from the financial
statements of XERO Limited: Cash $677,423 Accounts Payable
$1,721,669 Accounts Receivable $1,845,113 Notes Payable $2,113,345
Inventories $1,312,478 Total Current Assets $3,835,014 Total
Current Liabilities $3,835,014 Net Sales $9,912,332 Cost
$5,947,399
(a) Briefly explain what you understand by the term ‘operating
cycle’. (1 mark)
b) What is the operating cycle for XERO Limited? (1 marks
c) What can you say about XERO Limited’s accounts receivable and
inventory management if it is known...
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