Kendall Corners Inc. recently reported net income of $2.9 million and depreciation of $700,000. What was its net cash flow? Assume it had no amortization expense. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round you answer to the nearest dollar.

Kendall Corners Inc. recently reported net income of $2.9 million and depreciation of $700,000. What was its net cash flow? Assume it had no amortization expense. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round you answer to the nearest dollar.

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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A machine with a cost of $138,000 and accumulated depreciation of $93,000 is sold for $54,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: Multiple Choice $54,000. $9,000. $45,000. Zero. This is a financing activity. Zero. This is an operating activity.
Cuevas Custom Cycles sold equipment for cash. The income statement shows a gain on the sale of $920. The net book value of the asset was $3,610. Which of the following statements describes the cash effect of the transaction? A positive cash flow of $2,690 from investing activities B positive cash flow of $4,530 from investing activities C negative cash flow of $2,690 from investing activities D negative cash flow of $4,530 from investing activities
You have been assigned to check the valuation of InfoSystems, a software firm, done by acolleague of you. Infosystems has an expected life 5 years, constant cash flows over thisperiod, and zero salvage value. The income statement of the Infosystems is given as follows: Years 1-5 Revenues €1000 -Operating expenses €550 EBIT €450 - Interest expesnes €85 Taxable income €365 - Taxes €146 Net income €219 Infosystems has no capital expenditures, depreciation or working capital needs, i.e. theearnings are the cash flows to the firm. The cost of capital is 10%i. Estimate the value of Infosystems.ii. Assume that the value derived in (i) is the one also estimated by your colleague. Howwould you change your calculations if you are given that the cash flows are real cashflows and the cost of capital is the nominal cost of capital. The expected inflation rateis 2% annually. Comment on your answer.
You have been assigned to check the valuation of InfoSystems, a software firm, done by a colleague of you. Infosystems has an expected life 5 years, constant cash flows over this period, and zero salvage value. The income statement of the Infosystems is given as follows: Revenues - Operating Expenses EBIT - Interest expenses Taxable Income - Taxes Net Income Years 1-5 €1,000 €550 €450 €85 €365 €146 €219 Infosystems has no capital expenditures, depreciation or working capital needs, i.e. the earnings are the cash flows to the firm. The cost of capital is 10% i. Estimate the value of Infosystems. ii. Assume that the value derived in (i) is the one also estimated by your colleague. How would you change your calculations if you are given that the cash flows are real cash flows and the cost of capital is the nominal cost of capital. The expected inflation rate is 2% annually. Comment on your answer.
Give typing answer with explanation and conclusion
HiWay Furniture has sales of $316,000, depreciation of $47,200, interest expense of $41,400, COGS of $148,200, and taxes of $16,632. Net property plant and equipment increased by $36,400 for the year and there was a decrease in net working capital of $14,300. What is the free cash flow for the year? (Enter your answer in $. Do not add anything else including punctuation such as commas, any words, etc.)
Fidelity Systems reports net income of $81 million. Included in that number is depreciation expense of $9 million, and a gain on the sale of equipment of $2 million. Records reveal increases in Accounts Receivable, Inventory, and Accounts Payable of $3 million, $3 million, and $2 million, respectively. Calculate Fidelity's net cash flows from operating activities using the indirect method. (Negative value should be indicated by minus sign. Enter your answer in millions.) Net cash flows from operating activities million
TJ Industries has revenue of $400,000 and expenses of $250,000. The depreciation cost is $80,000 and marginal tax rate is 35%. Calculate cash flow from operation. Group of answer choices a.$150,000 b.$45,500 c.$125, 500 d.$135,000
Sage Hill Company purchased a machine at a price of $104, 000 by signing a note payable, which requires a single payment of $138, 424 in 3 years. What would be the purchase price of the machine had Sage Hill negotiated a single payment of $120,000 in 3 years, using the same effective rate? To calculate, use (1) a financial calculator or (2) Excel function PV. ( Round answer to 2 decimal places, e.g. 5,275.25.)
For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. Company E recently acquired an asset that has a cost basis of $9,000. The asset’s estimated life is 10 years, after which it will be sold for $1,000. Find the book value at the end of the third year if the sum-of-years digits depreciation is used.
Reno Company's net income of $30,000 includes a charge for depreciation expense of $20,000. Its estimated net annual cash flow would be OA) $10,000 B) $12,500 OC) $25,000 D) $50,000 E) none of the above

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