Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 14, Problem 6PS
Cash flow from investing activities excludes:
a. Cash paid for acquisitions.
b. Cash received from the sale of fixed assets.
c. Inventory increases due to a new (internally developed] product line.
d. All of the above.
Heifer Sports Financial statements |
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Income statement |
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Sales |
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Cost of goods sold |
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Depreciation |
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Selling 8a administrative expenses |
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EBIT |
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Interest expense |
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Taxable income |
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Taxes |
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Net income |
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Balance sheet. year-end |
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Assets | ||
Cash |
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Accounts receivable |
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Inventory |
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Total current assets |
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Fixed assets |
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Total assets |
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Liabilities and shareholders' equity | ||
Accounts payable |
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Short-term debt |
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Total current liabilities |
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Long-term bonds |
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Total liabilities |
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Common stock |
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Total shareholders’ equity |
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Total liabilities and shareholders' equity |
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Expert Solution & Answer
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QUESTION 1
Given the following information Please calculate the Free Cash Flow to Equity
EBIT
Net Income
Tax rate
Depreciation
Capital expenditure
2207.9
1513.5
21.80%
1807.1
954.6
Change in non-cash Working Capital -2176.3
Change in long term debt
Interest Expense
Liabilities
Total
Long Term debt
Total Assets
4755
5470
3902
5628
927.6
395.3
24511.8
13220.6
26168.2
P Flag question
According to the information given in the table below, which of
the following is cash flow from operating activities?
Net income
86,000
Deprecation
31,500
Increase in ACcounts Receivable
18,600
Decrease in Inventory
14,300
Increase in Accounts Payable
24,600
Select one:
a. 146400
b. 137800
C. 148200
d. 152600
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EB8. LO 16.3 Use the following information from Kentucky Company's financial statements to determine operating net cash
flows (indirect method).
$176,000
18,750
15,000
12,000
5,500
Net income
Depreciation expense
Gain on sale of plant assets
Increase in accounts receivable
Decrease in accounts payable
Chapter 14 Solutions
Essentials Of Investments
Ch. 14 - Prob. 1PSCh. 14 - Prob. 2PSCh. 14 - The Crusty Pie Co., which specializes in apple...Ch. 14 - The ABC Corporation has a profit margin on sales...Ch. 14 - A company’s current ratio is 2. If the company...Ch. 14 - Cash flow from investing activities excludes:...Ch. 14 - Cash flow from operating activities includes:...Ch. 14 - Prob. 8PSCh. 14 - Prob. 9PSCh. 14 - Prob. 10PS
Ch. 14 - Prob. 11PSCh. 14 - Use the DuPont system and the following data to...Ch. 14 - A firm has an ROE of 3 , a debt/equity ratio of...Ch. 14 - A firm has a tax burden ratio of 0.75 , a leverage...Ch. 14 - A11 analyst gathers the following information...Ch. 14 - Here are data On two Firms: LO142 Equity ($...Ch. 14 - Prob. 1CPCh. 14 - Which of the following best explains a ratio of...Ch. 14 - Use the Financial statements for Chicago...Ch. 14 - Prob. 4CPCh. 14 - The information in the following table comes from...Ch. 14 - Scott Kelly is reviewing Master Toy’s financial...Ch. 14 - The DuPont formula defines the net return on...Ch. 14 - Go to finance.yahoo.com to find information about...Ch. 14 - Answer the following questions for these two toy...Ch. 14 - Prob. 3WM
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- CURRENT PERIOD CASH FLOWS FROM OPERATING ACTIVITIES Net Profit (Loss) 9734 Adjustments to Net for Non-Cash Expenses Depreciation and Amort 15766 (Gain) Loss on Fixed Assets 0 (Increase) Decrease in Assets Accounts Receivable - Trade Other Accounts Receivable -27695 Inventory Prepaid Expenses 16962 Other Assets Increase (Decrease) in Liabilities Accounts Payable - Trade 23707 Other Liabilities 2582 Net Cash From Operations 41056 CASH FLOWS FROM INVESTING ACTIVITIES Sale (Acquisition) of Fixed As 0 Net Cash From Investing 0 CASH FLOWS FROM FINANCING ACTIVITIES Notes Payable 0 Notes Payable 0 Notes Payable 0 Net Cash From 0 Total Cash Increase (Decrease) 41056 Cash - Beginning of Period 2168786 Cash - End of Period 2209842 Cash Book Balance - End of Perio 2211141 Please Find the mistakes in this cashflow statement.arrow_forwardExercise 16-20B (Algo) Direct: Cash flows from operating activities LO P5 The following income statement and additional year-end information is provided. Sales Cost of goods sold Gross profit Operating expenses SONAD COMPANY Income Statement For Year Ended December 31 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 256,601 44,952 50,571 5,619 20,603 Statement of Cash Flows (Partial) Cash flows from operating activities $ 1,873,000 917,770 955,230 378,346 576,884 7,492 $ 584,376 $ 32,350 increase Accounts payable 15,700 increase Salaries payable Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. $ 14,450 decrease 2,750 decreasearrow_forwardQuestion 33 Extracts from the financial statements of ASB Ltd are set out below. Profit & Loss Account Year Ended 31st December 2000 so00 Turnover 400 Cost of sales (175) Gross profit 225 Profit on sale of fixed asset 80 305 Expenses Depreciation Net profit 35 40 75 230 31st December 1999 31st December 2000 SO00 SO00 Stock, debtors, current liabilities 50 65 What figure would appear in the cash flow statement of ASB Ltd for the year ended 31st December 2000 for cash from operations?arrow_forward
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