Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 3, Problem 1DIC
To determine
Explain the relation between net income and cash flow from operations for each year.
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Consider the balance sheets and selected data from the income statement of Keith Corporation that follow (attached)
a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2015.
b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015.
c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2015.
d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c).
QUESTION
REQUIRED
Use the information provided below to prepare the Cash Flow Statement of Jonah Ltd for the year ended 31
December 2022. (Some of the figures have already been entered in the answer book.)
INFORMATION
The Statement of Comprehensive Income of Jonah Ltd for the year ended 31 December 2022 and
Statement of Financial Position as at 31 December 2021 and 2022 are as follows:
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022
Sales
Cost of sales
Gross profit
Other operating income
Gross income
Distribution expenses
Administrative expenses
Earnings before interest and tax
Interest income
Interest expense
Esmings before tax
Company tax
Earnings after interest and tax
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER:
ASSETS
Non-current assets
Land and buildings
Plant and machinery
Current assets
Inventories
Accounts receivable
Total assets
EQUITY AND LIABILITIES
Equity
Ordinary share capital
Retained earnings
Non-current liabilities
Long-term borrowings…
Using the financial data below, prepare a statement of cash flows for the year ended December 31, 2014 for Summer
Peebles, Inc. using the indirect method.
Summer Peebles, Inc.
Income Statement Year Ending December 31,
2014
Sales
Cost of Goods Sold
Depreciation Expense
Sales and General Expense
Interest Expense
Income Tax Expense
Net Income
Assets
Cash
Accounts Receivable, Net
Inventory
Current Assets
Fixed Assets, Net
Summer Peebles, Inc.
Balance Sheets as of December 31, 2013 and 2014
Total Assets
Liabilities and Equity
Notes Payable to Banks
Accounts Payable
Interest Payable
Current Liabilities
Long-Term Debt
Deferred Income Tax
$1,000.00
Capital Stock
-$650.00
-$100.00
-$100.00
-$50.00
-$40.00
$60.00
2013
$50.00
$500.00
$750.00
$1,300.00
$500.00
$1,800.00
$100.00
$590.00
$10.00
$700.00
$300.00
$300.00
$400.00
2014
$60.00
$520.00
$770.00
$1,350.00
$550.00
$1,900.00
$75.00
$615.00
$20.00
$710.00
$350.00
$310.00
$400.00
Chapter 3 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 3 - Need for a Statement of Cash Flows. The accrual...Ch. 3 - Articulation of the Statement of Cash Flows with...Ch. 3 - Classification of Interest Expense. Under U.S....Ch. 3 - Prob. 4QECh. 3 - Classification of Changes in Short-Term Financing....Ch. 3 - Classification of Cash Flows Related to...Ch. 3 - Treatment of Non-Cash Exchanges. The acquisition...Ch. 3 - Computing Cash Collections from Customers....Ch. 3 - Computing Cash Payments to Suppliers. Lowes...Ch. 3 - Computing Cash Payments for Income Taxes. Visa...
Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting the Statement of Cash Flows. The...Ch. 3 - Interpreting the Statement of Cash Flows. Texas...Ch. 3 - Interpreting the Statement of Cash Flows. Tesla...Ch. 3 - Interpreting the Statement of Cash Flows. Gap Inc....Ch. 3 - Prob. 19PCCh. 3 - Prob. 20PCCh. 3 - Interpreting the Statement of Cash Flows....Ch. 3 - Extracting Performance Trends from the Statement...Ch. 3 - Interpreting a Direct Method Statement of Cash...Ch. 3 - Prob. 24PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 26PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 1AICCh. 3 - Prob. 1BICCh. 3 - Prob. 1CICCh. 3 - Prob. 1DICCh. 3 - Prob. 1EICCh. 3 - Prob. 1FICCh. 3 - Prob. 1GICCh. 3 - Prob. 1HICCh. 3 - Prob. 2AICCh. 3 - Prob. 2BICCh. 3 - Prob. 2CICCh. 3 - Prob. 2DICCh. 3 - Prob. 2EICCh. 3 - Prob. 2FICCh. 3 - Prob. 3IC
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