From Income Statement for the Year Ended December 31,2023(inRs.). Determine Cash from operating activity.RevenueSalesRs. 10,00,000ExpensesCost of Goods SoldRs. 200,000Other RevenuesRs. 50,000Operating ExpensesRs. 100,000Interest Expense Rs. 10,000Tax ExpenseNet IncomeRs. 20,000Rs. 220,000Additional Information:I Depreciation Expense: Rs. 50,000IIChanges in Working Capital:MANIPALUNIVERSITY JAIPURUniversity under Section 2 of the UGC Art•Centre for Distance and Online EducationIncrease in Accounts Receivable: Rs. 20,000• Decrease in Inventory: (Rs. 10,000)• Increase in Accounts Payable: Rs. 16,000•Increase in Accrued Expenses: Rs. 13,000

To compute: Cash from operating activity = Net income + Depreciation expense - Increase in Accounts…

Answered: From Income Statement for the Year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider a cash flow and interest profile as shown: The worth at the end of Year 3 of these cash flows is: a. $5,000.00 b. $5,504.72 c. $5,994.56 d. $5,440.00
Current Attempt in Progress Lee Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5180000 $3979520. $5180000. $6380480. $5706480. 704480 159000 337000 Lee should report cash provided by operating activities of
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01. Flounder Ltd. reported 2022 net income of HK$190,260. During 2022, accounts receivable increased by HK$16,380 and accounts payable increased by HK$11,970. Depreciation expense was HK$55.440 Prepare the cash flows from operating activities section of the statement of cash flows (amounts in thousands).
According to the information given in the table below, which of the following is cash flow from operating activities? Net income 95,000 Deprecation 38,000 Increase in Accounts Receivable 24,000 Decrease in Inventory 19,000 Increase in Accounts Payable 29,000 Select one: a. 173000 b. 157000 c. 145000 d. 119000
Calculate the free Cash Flow ratio
Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12.3% to evaluate this project. Based on extensive research, it has prepared the following incremental free cash flow projections (in millions of dollars): 1. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV if revenues are 10% lower than forecast? c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would…
From Income Statement for the Year Ended December 31, 2023 (in Rs.). Determine Cash from operating activity. Revenue Expenses Sales Rs. 500,000 Cost of Goods Sold Rs. 200,000 Other Revenues Rs. 50,000 Operating Expenses Rs. 100,000 Interest Expense Rs. 10,000 Tax Expense Rs. 20,000 Net Income Rs. 220,000 Additional Information: I. Depreciation Expense: Rs. 30,000 II. Changes in Working Capital: Increase in Accounts Receivable: Rs. 10,000. Decrease in Inventory: (Rs. 5,000). Increase in Accounts Payable: Rs. 8,000. Increase in Accrued Expenses: Rs. 3000
Revenues - Cost of Goods Sold - Depreciation =EBIT - Taxes (20%) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow Year 0 OA. by 35% OB. by 41% OC. by 69% O D. by 55% Year 1 500,000 - 300,000 Year 2 500,000 - - 100,000 -100,000 165,000-165,000 235,000 -47,000 235,000 -47,000 Year 3 500,000 -165,000 -100,000 188,000 188,000 100,000 100,000 - 20,000 - 20,000 268,000 268,000 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 8%, and that cost of goods sold is 45% of revenues? 235,000 - 47,000 188,000 100,000 - 20,000 268,000
7. The financial statements showed the following: Operating income $2,750,000, Depreciation $1,350,000, Expenditures on fixed assets and net operating working capital $860,000. Tax rate is 35%. Compute for the free cash flow.
1. Net Operating Capital for 2022 2. Amount of Total Investor-Supplied (Net Current Investment and Net Fixed Asset Investment) operating capital for 2022 3. Free Cash Flow for 2022 Net Operating Working Capital for 2022 4. Net Operating Profit After Taxes for 2022
The following details are provided by a manufacturing company: Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Product line OA. 2.74 years OB. 6.36 years O c. 6.71 years OD. 2.24 years $1,030,000 12 years $460,000 $430,000 $190,000 $50,000 Depreciation method Straight-line 12% Required rate of return Calculate the payback period for the investment. (Round your answer to two decimal places.) ...

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