a.
To compute: a. cash flow from operating activities and b. net income of Company H.
Introduction:
Statement of Cash Flow:
The statement of cash flow is a part of the financial statements that are included in the annual report of a company. It reports the cash generated or used by the business in a specified period.
Cash Flow from Operating Activities:
The cash generated over and above required by the business operations is called as the reported cash flow from the operating activities. Statement of cash flow reports the net cash flow generated or consumed by the business.
b.
To compute: a. cash flow from operating activities and b. net income of Company H.
Introduction:
Statement of Cash Flow:
The statement of cash flow is a part of the financial statements that are included in the annual report of a company. It reports the cash generated or used by the business in a specified period.
Cash Flow from Operating Activities:
The cash generated over and above required by the business operations is called as the reported cash flow from the operating activities. Statement of cash flow reports the net cash flow generated or consumed by the business.
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Fundamentals of Financial Management, Concise Edition (MindTap Course List)
- Hampton Industries had $39,000 in cash at year-end 2017and $11,000 in cash at year-end 2018. The firm invested in property, plant, and equipmenttotaling $210,000. Cash flow from financing activities totaled 1$120,000.a. What was the cash flow from operating activities?b. If accruals increased by $15,000, receivables and inventories increased by $50,000, anddepreciation and amortization totaled $25,000, what was the firm’s net income?arrow_forwardThe balance sheet of Computer World reports total assets of $350,000 and $450,000 at the beginning and end of the year, respectively. Sales revenues are $800,000, net income is $100,000, and net cash flows from operating activities are $150,000. What is Computer World's cash return on assets? Multiple Choice 37.5% 25.0% 33.3% 42.9%arrow_forwardIn its 2017 annual report, Allen Company reports the following (in thousands): 2017 2016 Total revenue $102,500 $99,400 Property, plant, equipment, gross 41,300 38,700 Property, plant, equipment, net 16,540 14,905 Depreciation expense 1,935 1,655 If revenue growth is projected to be 5%, the 2018 forecasted depreciation expense to be added back on the statement of cash flows is: A. $1,935 thousand B. $2,147 thousand C. $1,766 thousand D. $2,065 thousand E. None of the above disregardarrow_forward
- Computing cash flows for investing and financing activities Consider the following facts for Java Jolt: Beginning and ending Retained Earnings arc $45,000 and $70,000, respectively, Net income for the period is $60,000. Beginning and ending Plant Assets arc $124,500 and $134,500, respectively. Beginning and ending Accumulated Depreciation—Plant Assets are $21,500 and $26,500, respectively. Depreciation Expense for the period is $17,000, and acquisitions of new plant assets total $29,000. Plant assets were sold at a $5,000 gain. Requirements How much are cash dividends? What was the amount of the cash receipt from the sale of plant assets?arrow_forwardAnalyzing Cash Flow Ratios Meagan Enterprises reported the following information for the past year of operations:For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect. Transaction FreeCash Flow$400,000 Operating-Cash-Flow-to-Current Liabilities Ratio1.1 times Operating-Cash-Flow-to-Capital Expenditures Ratio5.0 times a. Recorded credit sales of $17,000 b. Collected $6,000 owed from customers c. Purchased $50,000 of equipment on long-term credit d. Purchased $70,000 of equipment for cash e. Paid $17,000 of wages with cash f. Recorded utility bill of $14,750 that has not been paidarrow_forwardCalculating Cash Flow Prescott Football Manufacturing had the following operating result for 2019: sales=$29,874; cost of goods sold=$21,632; depreciation expense=$3,470; interest expense =$514; dividends paid=$825. At the beginning of the year, net fixed assets were $19,872, current assets were $3,557, and current liabilities were $3,110. At the end of the year, net fixed assets were $22,987, current assets were $4,381, and current liabilities were $2,981. The tax rate for 2019 was 24 percent. what is the net income for 2019? what is the operating cash flow for 2019? what is the cash flow from assets for 2019? Is this possible? Explain. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? Example and interpret the positive and negative signs of your answer in parts (1) through (4).arrow_forward
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