The comparative balance sheet ofRobeson Educational Supply Educational Supply at December 31,2024,reported the following: 2024 2023 Current Assets: Cash $83,900 $20,500 Accounts Receivable 14,500 21,800 Merchandise Inventory 61,800 60,400 Current Liabilities: Accounts Payable 29,600 28,100 Accrued Liabilities 10,500 11,900 Robeson"s transactions during 2024 included the following: Payment of cash dividends $21,200 Depreciation expense $17,400 Purchase of equipment with cash 54,400 Purchase of building with cash 103,000 Issuance of long-term notes payable to borrow cash 44,000 Net income 63,600 Issuance of common stock for cash 111,000 1. Prepare the statement of cash flows of Robeson Educational Supply for the year ended December 31, 2024. Use the indirect method to report cash flows from operating activities. 2.Evaluate Robeson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3.If Robeson plans similar activity for 2024, what is its expected free cash flow?
The comparative balance sheet ofRobeson Educational Supply Educational Supply at December 31,2024,reported the following: 2024 2023 Current Assets: Cash $83,900 $20,500 Accounts Receivable 14,500 21,800 Merchandise Inventory 61,800 60,400 Current Liabilities: Accounts Payable 29,600 28,100 Accrued Liabilities 10,500 11,900 Robeson"s transactions during 2024 included the following: Payment of cash dividends $21,200 Depreciation expense $17,400 Purchase of equipment with cash 54,400 Purchase of building with cash 103,000 Issuance of long-term notes payable to borrow cash 44,000 Net income 63,600 Issuance of common stock for cash 111,000 1. Prepare the statement of cash flows of Robeson Educational Supply for the year ended December 31, 2024. Use the indirect method to report cash flows from operating activities. 2.Evaluate Robeson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation. 3.If Robeson plans similar activity for 2024, what is its expected free cash flow?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The comparative balance sheet ofRobeson Educational Supply Educational Supply at December 31,2024,reported the following:
|
|
2024
|
2023
|
|---|---|---|
|
Current Assets:
|
||
|
Cash
|
$83,900
|
$20,500
|
|
Accounts Receivable
|
14,500
|
21,800
|
|
Merchandise Inventory
|
61,800
|
60,400
|
|
Current Liabilities:
|
||
|
Accounts Payable
|
29,600
|
28,100
|
|
Accrued Liabilities
|
10,500
|
11,900
|
Robeson"s transactions during 2024 included the following:
|
Payment of cash dividends
|
$21,200
|
|
$17,400
|
|
Purchase of equipment with cash
|
54,400
|
Purchase of building with cash
|
103,000
|
|
Issuance of long-term notes payable to borrow cash
|
44,000
|
Net income
|
63,600
|
|
Issuance of common stock for cash
|
111,000
|
|
1.
Prepare the statement of cash flows of Robeson Educational Supply for the year ended December 31,
2024.
Use the indirect method to report cash flows from operating activities.2.Evaluate Robeson's cash flows for the year. Mention all three categories of cash flows, and give the reason for your evaluation.
3.If Robeson plans similar activity for 2024, what is its expected free cash flow?
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