Question
In: Finance
5) Ledger Properties has the following financial information: Current Year Prior Year Revenues $ 48,915...
5) Ledger Properties has the following financial information:
Current Year Prior Year
Revenues $ 48,915 $ 43,610
Administrative expenses 12,106 11,602
Interest expense 816 468
Cost of goods sold 29,715 26,309
Depreciation 1,408 1,387
Net fixed assets 32,711 31,984
Current liabilities 14,652 14,625
Common stock 15,000 14,000
Current assets 16,506 14,687
Long-term debt 12,200 ?
Retained earnings 7,365 4,246
Dividends paid 290 275
What is the cash flow of the firm for the current year if the tax rate is 22 percent?
A) $1,885
B) $1,042
C) $2,297
D) $2,096
E) $2,517
Solutions
Expert Solution
Answer:
Cash Flow of the Firm is Cash Flow from Assets.
Cash Flow from Assets = Operating Cash Flow – Net Capital Spending – Change in NWC
Operating Cash Flow = EBIT + Depreciation – Taxes
EBIT = Revenue – Cost of Goods Sold – Administrative Expenses –
Depreciation
EBIT = $48,915 - $29,715 - $12,106 - $1,408
EBIT = $5,686
Income before Taxes = EBIT – Interest Expense
Income before Taxes = $5,686 - $816
Income before Taxes = $4,870
Taxes = $4,870 * 22% = $1,071.40
Operating Cash Flow = $5,686 + $1,408 - $1,071.40
Operating Cash Flow = $6,022.60
Net Capital Spending = Ending FA – Beginning FA +
Depreciation
Net Capital Spending = $32,711 - $31,984 + $1,408
Net Capital Spending = $2,135
Change in Net Working Capital = (Ending CA – Ending CL) –
(Beginning CA – Beginning CL)
Change in Net Working Capital = ($16,506 - $14,652) – ($14,687 -
$14,625)
Change in Net Working Capital = $1,792
Cash Flow from Assets = $6,022.60 - $2,135 - $1,792
Cash Flow from Assets = $2,095.60
or Cash Flow from Assets = $2,096
Option D is Correct.
jeff jeffy answered 1 year agoRelated Solutions
. Ledger Properties has the following financial information: Current Year Prior Year Revenues $ 48,915 $...
. Ledger Properties has the following financial information:
Current Year
Prior Year
Revenues
$
48,915
$
43,610
Administrative expenses
12,106
11,602
Interest expense
816
468
Cost of goods sold
29,715
26,309
Depreciation
1,408
1,387
Net fixed assets
32,711
31,984
Current liabilities
14,652
14,625
Common stock
15,000
14,000
Current assets
16,506
14,687
Long-term debt
12,200
?
Retained earnings
7,365
4,246
Dividends paid
290
275
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# Units in Beginning Inventory
?
0
# Units Sold
570,000
580,000
# Units Manufactured (Actual)
610,000
590,000
# Units Manufactured (Budget)
640,000
600,000
Selling Price
(per unit)
10.00
9.90
Variable Manufacturing Costs
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5.00
4.80
Variable Sales+Admin Costs
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1.00
1.00
Fixed Manufacturing Costs (Budget and Actual)
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1,600,000
1,560,000
Fixed sales+admin...
XYZhas the following financial information: Current Year Prior Year # Units in Beginning Inventory ? ...
XYZhas the following financial information:
Current Year
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# Units in Beginning Inventory
?
0
# Units Sold
570,000
580,000
# Units Manufactured (Actual)
610,000
590,000
# Units Manufactured (Budget)
640,000
600,000
Selling Price
(per unit)
10.00
9.90
Variable Manufacturing Costs
(per unit)
5.00
4.80
Variable Sales+Admin Costs
(per unit)
1.00
1.00
Fixed Manufacturing Costs (Budget and Actual)
(total)
1,600,000
1,560,000
Fixed sales+admin costs...
Given the following information: Prior Year (Budget) Prior Year (Actual) Current Year (Budget) Current Year (Actual)...
Given the following information:
Prior Year (Budget)
Prior Year (Actual)
Current Year (Budget)
Current Year (Actual)
Beginning Inventory (Units)
0
0
?
?
Sales (Units)
600,000
580,000
575,000
570,000
Manufactured (Units)
600,000
590,000
640,000
610,000
Selling Price ($/unit)
9.99
9.90
9.95
10.00
Variable Manufacturing Cost ($/unit)
4.92
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5.00
4.95
Total Fixed Manufacturing Costs ($)
1,584,000
1,561,000
1,625,000
1,599,531
Variable Selling Cost ($/unit)
1.00
1.01
0.99
1.00
Total Fixed SG&A Costs ($)
350,000
353,000
352,850
348,000
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I need to create a balance sheet with the following information Account Current Year Prior Year...
I need to create a balance sheet with the following
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Account
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Prior Year
Cash
3,422,928
3,773,862
Balance sheet
Accrued compensation and related
liabilities
4,248,791
2,656,831
Balance sheet
Accounts and notes receivable
52,966,361
48,883,616
Balance sheet
Prepaid expenses and other current
assets
13,956
33,094
Balance sheet
Inventory
1,461,138
1,397,898
Balance sheet
Accounts payable
2,080,892
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Balance sheet
Payable to thirdparty payors
400,083
321,196
Balance sheet
Notes and loans payable
5,142,900
Balance sheet
Other deferred credits
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Balance sheet...
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Mustang Motors. has the following assets, liabilities, revenues and expenses for the current year. The accounts...
Mustang Motors. has the following assets, liabilities, revenues
and expenses for the current year. The accounts are listed below in
alphabetical order. The company has a December 31st year
end.
Accounts receivable
$27,000
Office equipment
$59,500
Accounts payable
38,500
Office supplies
5,000
Building
45,000
Service revenue
102,000
Cash
60,000
Supplies expense
8,000
Commission expense
24,500
Utilities expense
18,500
Common stock
42,500
Wage expense
65,500
Interest payable
10,800
Deferred revenue
8,200
Land
40,000
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Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year:...
Starbucks Corporation reported the following geographical
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Recent Year
(in millions, rounded)
Prior Year
(in millions, rounded)
Americas
$9,904
$7,974
China/Asia Pacific
2,396
1,130
Channel Development*
1,731
1,546
EMEA**
1,217
1,295
Other
2,100
1,675
Total
$17,348
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a. Prepare a horizontal analysis of the segment
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The current year and prior-year balance sheet of NCA show the following account balance: current year...
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current year
prior year
Supplies
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$6500
Unearned Revenue
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$8000
During the current year, NCA $13300 of supplies expense and
received $8700 of cash for services to be performed later.
Required: Using the ledger accounts, determine NCA's supplies
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