(a)
To compute: Net income for 2019.
Introduction: The
(b)
To compute: Net operating cash flow for 2019.
Introduction: The balance sheet is one of the three financial statements that every organization prepares periodically. It helps the users of the financial statements in analyzing the financial position of the organization.
(c)
To compute: Cash flow from assets in 2019.
Introduction: The balance sheet is one of the three financial statements that every organization prepares periodically. It helps the users of the financial statements in analyzing the financial position of the organization.
(d)
To compute: Cash flow to creditors and stockholders.
Introduction: The balance sheet is one of the three financial statements that every organization prepares periodically. It helps the users of the financial statements in analyzing the financial position of the organization.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Corporate Finance
- Nanticoke Industries had the following operating results for 2020: Sales = $30,780; Cost of goods sold = $ 20, 110; Depreciation expense = $5, 540; Interest expense = $2,940; Dividends paid = $1,800. At the beginning of the year, Net fixed assets = $17,390, Current assets = $5,930, Current liabilities = $3,500. At the end of the year, Net fixed assets = $21,010, Current assets = $7,390, Current liabilities = $4,060. The tax rate for 2020 was 30%. a. What is net income for 2020? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) Net income $ b. What is the operating cash flow for 2020? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) Operating cash flow $ c. What is the cash flow from assets for 2020? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) Cash flow from assets $arrow_forwardStackhouse Industries had the following operating results for 2020: sales = $54,510; cost of goods sold = $37,430; depreciation expense = $5,830; interest expense = $1,325; dividends paid = $2,820. At the beginning of the year, net fixed assets were $33,200, current assets were $8,300, and current liabilities were $5,553. At the end of the year, net fixed assets were $42,820, current assets were $9,395, and current liabilities were $5,870. The tax rate was 24 percent. a. What was net income for 2020? (Do not round intermediate calculations.) b. What was the operating cash flow for 2020? (Do not round intermediate calculations.) c. What was the cash flow from assets for 2020? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) d-1. If no new debt was issued during the year, what was the cash flow to creditors? (Do not round intermediate calculations.) d-2. If no new debt was issued during the year, what was the cash flow to…arrow_forwardBonita Corporation had the following 2020 income statement. Sales revenue $198,000Cost of goods sold 125,000Gross profit 73,000Operating expenses (includes depreciation of $23,000) 53,000Net income $20,000 The following accounts increased during 2020: Accounts Receivable $13,000, Inventory $10,000, Accounts Payable $13,000. Prepare the cash flows from the operating activities section of Bonita’s 2020 statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Bonita CorporationStatement of Cash Flows-Indirect Method (Partial)choose the accounting periodselect an opening section nameselect an item$enter a dollar amountAdjustments to reconcile net income toselect an opening subsection nameselect an item$enter a dollar amountselect an itementer a dollar amountselect an itementer a dollar amountselect an itementer a dollar amountenter a total amount of adjustmentsselect a closing section…arrow_forward
- Ramsay & Bell, Inc. had sales for 2019 of $180,000, and EBITDA was 36% of sales. Furthermore, depreciation was $8,400, interest was $5,760, the corporate tax rate was 21%, and the company pays 10% of its net income as dividends. Given this information and the balance sheets below, calculate the free cash flow for 2019. $24,556 $27,056 $28,556 $30,056 None of the above is within $100 of the correct answer.arrow_forwardSplish Company reported 2020 net income of $154,400. During 2020, accounts receivable increased by $15,690 and accounts payable increased by $9,962. Depreciation expense was $48,400. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis e.g. (15,000).) SPLISH COMPANY Cash Flow Statement Adjustments to reconcile net income to %24arrow_forwardHeadland Corporation had the following 2020 income statement. Sales revenue $200,000 Cost of goods sold 119,000 Gross profit 81,000 Operating expenses (includes depreciation of $23,000) 47,000 Net income $34,000 The following accounts increased during 2020: Accounts Receivable $12,000, Inventory $10,000, Accounts Payable $12,000. Prepare the cash flows from operating activities section of Headland's 2020 statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Headland Corporation Statement of Cash Flows-Indirect Method (Partial) 103 76°F A d0) O 4/22 P Type here to searcharrow_forward
- Shamrock Corporation had the following 2020 income statement. Sales revenue $192,000 Cost of goods sold 130,000 Gross profit 62,000 Operating expenses (includes depreciation of $22,000) 48,000 Net income $14,000 The following accounts increased during 2020: Accounts Receivable $11,000, Inventory $12,000, Accounts Payable $11,000. Prepare the cash flows from operating activities section of Shamrock’s 2020 statement of cash flows using the indirect method.arrow_forwardJubilant Ind has reported net income of P176,600 for 2019. It also reported depreciation expense of P43,700 and a loss of P4,900 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of 11,600 for the year, a 13,600 Increase in accounts payable, and a 3,000 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020 by using indirect method.arrow_forwardSuppose Siam Traders has the following results related to cash flows for 2019: Net Income of $7,200,000 Increase in Accounts Payable of $600,000 Increase in Accounts Receivable of $100,000 Decrease in Debt of $700,000 Depreciation Expenses of $2,000,000 Dividends Paid of $500,000 Decrease in Inventory of $1,000,000 Purchases of Property, Plant, & Equipment of $8,300,000 Other Adjustments from Financing Activities of -$100,000 Other Adjustments from Investing Activities of $400,000 Other Adjustments from Operating Activities of -$200,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow?arrow_forward
- During 2020, Diaz Corporation had net income of $41,000. Included on its income statement were depreciation expense of $2,300 and amortization expense of $300. During the year, Accounts Receivable increased by $3,400, Inventories decreased by $1,900, Prepaid Expenses decreased by $200, Accounts Payable increased by $5,000, and Accrued Liabilities decreased by $450. Determine net cash flows from operating activities using the indirect method.arrow_forwardMartinez Industries had the following operating results for 2021: Sales = $33,914; Cost of goods sold = $24,016; Depreciation expense = $5,957; Interest expense = $2,690; Dividends paid = $1,960. At the beginning of the year, net fixed assets were $19,900, current assets were $7,026, and current liabilities were $3,968. At the end of the year, net fixed assets were $24,466, current assets were $8,660, and current liabilities were $4,637. The tax rate for 2021 was 23 percent. What is net income for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What is the operating cash flow for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What is the cash flow from assets for 2021? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. If no new debt was issued during the…arrow_forwardMartinez Industries had the following operating results for 2021: Sales = $34,318; Cost of goods sold = $24,212; Depreciation expense = $5,997; Interest expense = $2,710; Dividends paid = $1,996. At the beginning of the year, net fixed assets were $19,940, current assets were $7,054, and current liabilities were $3,992. At the end of the year, net fixed assets were $24,502, current assets were $8,684, and current liabilities were $4,673. The tax rate was 22 percent. a. What is net income for 2021? b. What is the operating cash flow for 2021? ( c. What is the cash flow from assets for 2021? d-1. If no new debt was issued during the year, what is the cash flow to creditors? ( d-2. If no new debt was issued during the year, what is the cash flow to stockholders?arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning