For each of the following companies, calculate the cash flow from operations: (List items that increase...

For each of the following companies, calculate the cash flow from operations: (List items that increase cash flow first.) NuVu Ltd. ABC Inc. Akhtar Ltd. Sales revenue $381,000 $577,000 $936,000 Cost of goods sold 210,000 330,000 621,000 Selling and administrative expenses 65,000 94,000 111,000 Depreciation expense 6,600 18,000 28,000 Interest expense 3,000 1,000 2,000 Income tax expense 18,000 35,000 45,000 Dividends paid 7,000 5,000 25,000 Increase/ (Decrease) in Accounts receivable (2,500 ) 6,000 (9,500 ) Inventory 5,800 (8,000 ) 17,000 Property, plant, and equipment 50,000 (10,000 ) 60,000 Accounts payable 4,100 (7,500 ) 4,200 Interest payable (2,400 ) 1,300 (500 ) Income tax payable 2,500 (1,500 ) 6,500 Mortgage payable 20,000 (40,000 ) 10,000 Common shares 30,000 (5,000 ) (80,000 )

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ekkarill92 answered 1 year ago

Cash Flow From Assets Problem: Calculate each step of the cash flow from assets based on...

Cash Flow From Assets Problem: Calculate each step of the cash flow from assets based on the following information. Use the examples in the presentation as a guide. Working Capital Accounts: 2015: Current Assets = 4,400; Current Liabilities = 1,500 2014: Current Assets = 3,500; Current Liabilities = 1,200 Fixed Assets and Depreciation: 2015: Net Fixed Assets = 3,400 2014: Net Fixed Assets = 3,100 Depreciation Expense = 400 Long-Term Debt and Equity: 2015: Long-Term Debt = 4,000; Common Stock...

1.) Indicate whether each of the following items would result in net cash flow from operating...

1.) Indicate whether each of the following items would result in net cash flow from operating activities being higher (H) or lower (L) than net income. a.) Decrease in accounts payable. b.) Depreciation expense. c.) Decrease in inventory. d.) Gain on sale of assets. e.) Increase in accounts receivable. f.) Increase in deferred tax liabilities. g.) Decrease accrued liabilities. h.) Increase in prepaid expenses. i.) Increase in deferred revenue. j.)...

The cash flow from operations and cash flow from investing are both positive. Which of the...

The cash flow from operations and cash flow from investing are both positive. Which of the following best describes the situation? 2004 2005 Net income $189 $170 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 201 173 Deferred income taxes 14 (20) Restructuring charges 80 90 Accounts receivable 30 20 Inventory (30) 50 Current liabilities 10 30 Cash flow from operations 494 513 Sale of equipment 200 300 Purchase of equipment (130) (120)...

Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders DATA 　　...

Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders DATA 　　 Balance Sheet: 2009 2010 Cash $15,000 $14,000 Marketable Securities 6,000 6,200 Receivables 42,000 33,000 Inventory 51,000 84,000 Prepaid expenses 1,200 1,100 Total current assets 115,200 138,300 Gross plant and equipment 316,000 330,000 Less: accumulated depreciation (30,000) -60,000 Total assets $401,200 $408,300 2009 2010 Accounts payable $48,000 $57,000 Accruals 6,000 5,000 Notes payable 15,000 13,000 Total current...

Which of the following items would not be included as a cash flow from operating activities...

Which of the following items would not be included as a cash flow from operating activities in a statement of cash flows? Multiple Choice Collections from customers. Interest on note payable. Purchase of equipment. Purchase of inventory.

What does it mean when cash flow from operations on a company's cash flow statement is...

What does it mean when cash flow from operations on a company's cash flow statement is negative? Is this bad news? Is it dangerous?

Calculating Operating Cash Flows (Direct Method) Calculate the cash flow for each of the following cases....

Calculating Operating Cash Flows (Direct Method) Calculate the cash flow for each of the following cases. a. Cash paid for advertising: Advertising expense $62,000 Prepaid advertising, beginning of year 11,000 Prepaid advertising, end of year 15,000 Cash paid for advertising $Answer b. Cash paid for income taxes: Income tax expense $29,000 Income tax payable, beginning of year 7,100 Income tax payable, end of year 4,900 Cash paid for income taxes $Answer c. Cash paid for merchandise purchased: Cost of goods...

Indicate whether each of the following items increases or decreases cash flow. Decrease in accrued expenses...

Indicate whether each of the following items increases or decreases cash flow. Decrease in accrued expenses Dividend payment Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in investments Depreciation expense Decrease in notes payable Decrease in accounts receivable Increase in notes receivable Increase in bonds payable Increase in Plant and equipment (gross) Increase in common stock Increase in preferred stock Decrease in income tax payable

Calculate “Operating” Cash Flow, ΔNet Working Capital, Net Capital Spending, Cash Flow from Assets, Cash Flow...

Calculate “Operating” Cash Flow, ΔNet Working Capital, Net Capital Spending, Cash Flow from Assets, Cash Flow to Creditors, and Cash Flow to Shareholders. Please show work and equations. Balance Sheet 2015 2016 Income Statement 2016 Cash 5800 5820 Sales 26500 All Other Current Assets 4000 4910 Various Operating Expenses 11900 Net Fixed Assets 6600 9200 Depreciation Expense 1400 Current Liabilities 7200 8870 Interest Expense 920 Long-term Liabilities 5700 6940 Gain on Sale of Asset 1020 Common Stock 2500 3380 Taxable...

Statement of Cash Flows The following are several items involving the cash flow activities of the...

Statement of Cash Flows The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016: Net income, $58,000 Payment of dividends, $16,300 Ten-year, $32,100 bonds payable were issued at face value Depreciation expense, $15,500 Building acquired at a cost of $30,800 Accounts receivable decreased by $2,700 Accounts payable decreased by $4,700 Equipment acquired at a cost of $6,500 Inventories increased by $7,000 Beginning cash balance, $15,300 Required: Prepare Rocky Horror Picture's statement of...

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