Question
In: Accounting
Following is information provided about Acme United Company (and note the flow of time, from left...
Following is information provided about Acme United Company (and note the flow of time, from left to right):
12/31/17 12/31/18
Cash $ 2,000 $ 4,000
Accounts receivable 10,000 18,000
Machinery 100,000 120,000
Accumulated depreciation (40,000) (45,000)
Total Assets $ 72,000 $ 97,000
Accounts payable $ 3,000 $ 1,000
Income taxes payable 15,000 3,000
Finance leases 20,000 30,000
Common stock 1,000 10,000
Retained earnings 33,000 53,000
Total liabilities and equity $ 72,000 $ 97,000
Other information (for the year ended 12/31/18):
Net income $25,000
Depreciation expense 5,000
Required: [Note: You do not need to complete B and C, if you do, there may be some yet to be determined extra credit.]
- Calculate cash flow provided by or used in operating activities. (Cash inflow or outflow.) Show your work and if you need to make any assumptions, identify those assumptions (hint: you’ll need to make assumptions). Use the indirect method only.
- Based only on the information provided, calculate cash flow used in or provided by financing activities. Show your work!
- Based only on the information provided, calculate cash flow use in or provided by investing activities. Show your work!
Solutions
Expert Solution
A. Net Cash flow from operating activity = $ 8000
B. Net Cash used in investing activity = $ 20000
C. Net cash from financing activity = $ 14000
ekkarill92 answered 10 months agoRelated Solutions
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Yr
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