FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- How do I compute the operating cash flow to capital expenditure ratio?arrow_forwardLand costing $138,463 was sold for $175,514 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?arrow_forwardSuppose during 2022 that Cypress Semiconductor Corporation reported net cash provided by operating activities of $99,126,330, cash used in investing of $47,869,860, and cash used in financing of $8,178,480. In addition, cash spent for fixed assets during the period was $28,663,530. No dividends were paid. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow %24arrow_forward
- Kutcher Systems sold land, investments, and issued their own common stock for $10 million, $16 million, and $21 million, respectively. Kutcher also purchased treasury stock, equipment, and a patent for $2 million, $3 million, and $4 million, respectively. Required: 1. What amount should the company report as net cash flows from investing activities? 2. What amount should the company report as net cash flows from financing activities? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount should the company report as net cash flows from investing activities? (Negative value should be indicated by a minus sign. Enter your answer in millions.) Net cash flow from investing activities million Required 1 23 of 34 *** Telp Nextarrow_forwardStaley Inc. reported the following data: Net income $338,400 Depreciation expense 66,700 Loss on disposal of equipment 31,900 Increase in accounts receivable 25,200 Increase in accounts payable 10,100 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. what is the answer to this?arrow_forwardWhich of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method? a. a loss on the sale of equipment b. gain on sale of land c. depreciation expense d. dividends declared and paidarrow_forward
- Assume net income was $230,000, depreciation expense was $6,400, accounts receivable decreased by $11,500, and accounts payable decreased by $3,100. The amount of net cash flows from operating activities is:arrow_forwardSuppose your company sells services of $310 in exchange for $200 cash and $110 on account. Depreciation of $130 relating to equipment also is recorded. Calculate the amount that should be reported as net cash flow from operating activities. Calculate the amount that should be reported as net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).arrow_forwardMicro Manufacturing reports net income of $866,000. Depreciation Expense is $74,000, Accounts Receivable increases $36,000 and Accounts Payable decreases $11,000. Calculate net cash flows from operating activities using the indirect method. (Negative value should be indicated by minus sign.) Net cash flows from operating activitiesarrow_forward
- First three sub-part is solvedarrow_forwardAnalyze this transaction as an asset, liability, paid in capital or retained earnings(plus or a negative) collected $235,000 in cash from credit customers.arrow_forward1. Why does the company add back depreciation to compute net cash flows from operating activities? 2. Why are there changes in accounts receivable and inventories as adjustments to net earnings. Are accounts receivable and inventories balances increasing or decreasing during the year? 3. It is reported that the company invested $572 million in property, plant, and equipment. Is this an appropriate type of expenditure for the company to make? What relation should expenditures for PPE have with depreciation expense? 4. Stryker paid $300 million to repurchase its common stock in fiscal 2018 and, in addition, paid dividends of $703 million. Thus, it paid $1.003 million of cash to its stockholders during the year. How do we evaluate that use of cash relative to other possible uses for the company's cash? 5. Provide an overall assessment of the company's cash flows for fiscal 2018. In the analysis, consider the sources and uses of cash.arrow_forward
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