A company's income statement showed the following: net income, $125,000; depreciationexpense, $35,500; and gain on sale of plant assets, $9,500. An examination of the company'scurrent assets and current liabilities showed the following changes as a result of operatingactivities: accounts receivable decreased $10,500; merchandise inventory increased $23,500;prepaid expenses decreased $7,300; accounts payable increased $4,500. Calculate the net cashprovided or used by operating activities.A. $135,000.B. $147,800.C. $149,800.D. $175,800E. $154,600.

To calculate the net cash provided by operating activities, we start with the company's net income…

Answered: A company's income statement showed the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $ 391,000 Accounts receivable decrease $ 27,200 Depreciation expense 44,200 Inventory decrease 46,000 Amortization expense 8,000 Prepaid expenses increase 6,400 Gain on sale of plant assets 7,100 Accounts payable decrease 8,200 Salaries payable increase 1,900 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. Note: Amounts to be deducted should be indicated with a minus sign.
Green Forest Corp.'s 2023 income statement showed the following: profit, $291,800; depreciation expense, building, $39,000; depreciation expense, equipment, $6,590; and gain on sale of equipment, $6,200. An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $14,510; merchandise inventory decreased $42,200; prepaid expenses increased $2,990; accounts payable decreased $7,390; and other current payables increased $1,150. Use the indirect method to calculate the cash flow from operating activities. (List any deduction in cash and cash outflows as negative amounts.) GREEN FOREST CORP.'S Statement of Cash Flows Cash flows from operating activities: Adjustments to reconcile profit to net cash provided by operating activities: $ 0
ABC industries had the following operating results for last year: sales = $28,900; cost of goods sold = $24,600; depreciation expense = $1,700; interest expense = $1,400; dividends paid = $1,000. At the beginning of the year, net fixed assets were $14,300, current assets were $8,700, and current liabilities were $6,600. At the end of the year, net fixed assets were $23,900, current assets were $9,200, and current liabilities were $7,400. The tax rate for last year was 34 percent. Assume there is no short term investments and notes payable. What was the free cash flow for last year? $7584 $2610 O- $7584 - $2610
Calculating the Average Total Assets and the Return on Assets The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Santiago Systems Income Statement For the Year Ended December 31, 20X2 Amount Percent Net sales $5,345,000 100.0% Less: Cost of goods sold (3,474,250) 65.0 Gross margin $1,870,750 35.0 Less: Operating expenses (1,140,300) 21.3 Operating income $730,450 13.7 Less: Interest expense (27,000) 0.5 Income before taxes Less: Income taxes (40%)* $703,450 13.2 (281,380) 5.3 Net income $422,070 7.9 * Includes both state and federal taxes.
Financial Information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Earnings before taxes (EBT) Taxes (25%) Net Income Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 2021: $ b. What was the 2021 free cash flow? 2021 $3,300.0 2,805.0 $495.0 $ 2020 $3,000.0 2,550.0 $450.0 72.0 $378.0 66.0 $312.0 124.8 $187.2 $181.6 $149.8 -Select- 86.0 $ 409.0 72.6 $ 336.4 134.6 $201.8 2021 50.0 $ 483.0 725.0 $1,258.0 864.0 $2,122.0 $264.0 225.0 Notes payable 66.0 Total current liabilities $ 555.0 Long-term bonds 660.0 Total liabilities…
Baxter Company reported a net loss of $15,070 for the year ended December 31. During the year, accounts receivable decreased by $4,715, merchandise inventory increased by $11,951, accounts payable increased by $9,458, and depreciation expense of $4,513 was recorded. During the year, operating activities under the indirect method
Power Company reported beginning and ending total assets of $29,000 and $40,000, respectively. Its net sales revenue for the year were $23,000. What was Power's asset turnover ratio?
McDonald’s Corporation (MCD) reported the following balance sheet and income statement data for two recent years: (amounts are in $ millions) Total assets Net Income SalesYear 1: $33,803.70 $5,192.30 $22,820.40Year 2: $32,811.20 $5,924.30 $21,025.20 What was McDonald’s asset turnover ratio for Year 2?
Dundee Co. reported the following for the current year: net sales of $80,000; cost of goods sold of $60,000; beginning balance of total assets of $115,000; and ending balance of total assets of $85,000. Compute total asset turnover. Round to one decimal.
The following income statement and additional year-end information is provided. SONAD COMPANYIncome StatementFor Year Ended December 31 Sales $ 2,420,000 Cost of goods sold 1,185,800 Gross profit 1,234,200 Operating expenses Salaries expense $ 331,540 Depreciation expense 58,080 Rent expense 65,340 Amortization expenses—Patents 7,260 Utilities expense 26,620 488,840 745,360 Gain on sale of equipment 9,680 Net income $ 755,040 Accounts receivable $ 36,900 increase Accounts payable $ 10,425 decrease Inventory 36,800 increase Salaries payable 3,050 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from…
Aneko Company reports the following: net sales of $17,500 for Year 2 and $16,625 for Year 1; end-of-year total assets of $18,000 for Year 2 and $16,500 for Year 1. 1. Compute its total asset turnover for Year 2. 2. Aneko's competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute its total asset turnover for Year 2. Choose Numerator: 1 1 1 Total asset turnover Choose Denominator: = = = Total asset turnover Total asset turnover times
Use the following excerpts from Yardley Company’s financial information. 2018 IncomeStatement BalanceSheets Sales $455,000 Cost of Goods Sold (221,500) Operating Expenses, other than Depreciation Expense (60,600) Depreciation Expense (21,000) Gain on Sale of Plant Assets 23,500 Net Income $175,400 Dec. 31,2018 Cash $323,450 Accounts Receivable 39,750 Inventory 31,000 Accounts Payable 17,550 Accured Liabilities 3,500 Dec. 31, 2017 Cash $133,500 Accounts Receivable 36,500 Inventory 35,000 Accounts Payable 19,550 Accured Liabilities 2,200 Additional Information: Plant assets were sold for $40,000; book value $16,500. Dividends of $23,000 were declared and paid. Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a…

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