a.
To identify: The action(s) that will increase the cash balance on the
Balance sheet:
Balance sheet is a part of the financial statements that lists company’s assets, liabilities and shareholders’ fund. It is prepared at the end of the accounting period and informs about company’s financial position on that day.
b.
To identify: The action(s) that will increase the cash balance on the balance sheet.
Balance sheet:
Balance sheet is a part of the financial statements that lists company’s assets, liabilities and shareholders’ fund. It is prepared at the end of the accounting period and informs about company’s financial position on that day.
c.
To identify: The action(s) that will increase the cash balance on the balance sheet.
Balance sheet:
Balance sheet is a part of the financial statements that lists company’s assets, liabilities and shareholders’ fund. It is prepared at the end of the accounting period and informs about company’s financial position on that day.
d.
To identify: The action(s) that will increase the cash balance on the balance sheet.
Balance sheet:
Balance sheet is a part of the financial statements that lists company’s assets, liabilities and shareholders’ fund. It is prepared at the end of the accounting period and informs about company’s financial position on that day.
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Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
- Which of the following actions would increase the amount of cash on a firm’s balance sheet? It buys new plant and equipment at a cost of $3 million. It increases dividends paid on its common stock from $1.25 to $1.50. It issues $2 million of new common stock. It increases its inventory by $0.5 million.arrow_forwardA. What is the liquidity position of the company? Support your answer with relevantratios B. What is the Cash Conversion Cycle for the company? Assume a 360-day year. C. Explain what is meant when a business activity has high operating gearing, andwhat are the implications for a business with high operating gearing?arrow_forward1. What is the firm's net income in the current year? 2. What is the firm's dividend payment in the current year? 3. What is the firm's cash flow from operations? 4. What is the firm's cash flow from financing? What is the firm's cash flow from investing? 6. What is the firm's total change in cash from the prior year to the current year? Item Accounts payable Accounts receivable Accruals Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt Net fixed assets Notes payable Operating expenses (excl. depr.) Retained earnings Sales Taxes Prior year 8,191.00 6,088.00 1,024.00 ??? 10,543.00 12,656.00 4,917.00 2,500 733 4,193.00 13,811.00 51,233.00 4,358.00 13,977 28,930.00 35,119 2,084 Current year 7,716.00 6,770.00 1,571.00 ??? 12,675.00 18,298.00 5,033.00 2,811.00 417 4,815.00 13,612.00 54,050.00 9,914.00 18,172 29,327.00 47,003.00 2,775arrow_forward
- sources and Uses of Cash. How would each ofthe following events would affect the firm's balancesheet. State whether each change is a source or useof cash. (LO3)d.The firm repurchases its own common stock.e.The firm pays its quarterly dividend.f. The firm issues $1 million of long-term debt anduses the proceeds to repay a short-term bank loan.arrow_forwardPowell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $ 3,240.0 $2,700.0 Operating costs excluding depreciațion and amortization 2,673.0 2,295.0 EBITDA $ 567.0 $ 405.0 Depreciation and amortization 101.0 81.0 Earnings before interest and taxes (EBIT) $ 466.0 $ 324.0 Interest 71.3 59.4 Earnings before taxes (EBT) $ 394.7 $ 264.6 Taxes (25%) 157.9 105.8 Net income $ 236.8 24 158.8 Common dividends $ 213.1 $ 127.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalents 2$ 34.0 24 27.0 Accounts receivable 327.0 297.0 Inventories 597.0 459.0 Total current assets $ 958.0 %24 $ 783.0 Net plant and equipment 1,013.0 810.0 Total assets $1,971.0 $1,593.0 Liabilities and Equity Accounts payable $ 203.0 $ 162.0 Accruals 194.0 162.0 Notes payable 64.8 54.0 Total current liabilities $ 461.8 $ 378.0 Long-term bonds 648.0 540.0 Total liabilities $1,109.8 $ 918.0 Common stock 789.8…arrow_forward1. Calculate the number of shares outstanding for the company and the market price per share at the end of 2020.2. Calculate the cash flow from operations, net capital spending, and the change in NWC to calculate the cash flow from assets. Then, calculate the cash flow to creditors and cash flow to shareholders to calculate the cash flow from assets from the “uses” side and confirm that the cash-flow identity is satisfied.arrow_forward
- There are a few cash flow activities occurred during the year of 2022 in a firm. The firm sells some goods from inventory. The firm sells some machinery to a bank and leases it back for a period of 20 years. The firm buys back 1 million shares of stock from existing shareholders. 1). Which of above activity(ies) belong to CFO, CFI or CFF? 2). Will these actions increase or decrease the firm’s cash balance consider the accounting procedure/standards? Explain why you selected these options and what assumptions you made about their accounting standards, credit policies, operating procedures, and other factors that you considered.arrow_forwardWhat is the firm's cash flow from financing? What is the firm's cash flow from investing? What is the firm's total change in cash from the prior year to the current year? Answer format: Number: Round to: 0 decimal places.arrow_forwardStatement of Cash flows Analysis Analyze the statement of cash flows of the companies and find the answers of the followings 1. Are cash flows from operations positive? What is the trend for three years? 2. Is operating cash flows smaller or larger than net income? 3. Did the company purchase any property plant and equipment during the last year? 4. Did the company obtain loan during the last year? 5. Did the company pay dividend?arrow_forward
- How do you figure the largest amount of cash dividend a company can pay based on the balance sheet for year 2?arrow_forwardA. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $500,000 less cash than you think you will need. What would you most likely do from the following list? a. Develop a plan to increase accounts payable by $500,000 b. Make plans for a company holiday party c. Pay dividends to shareholders d. Develop a plan to increase accounts receivable B. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $500,000 less cash than you think you will need. What would you most likely do from the following list? a. Reduce your volume projection in your sales forecast to save money b. Review all proforma expenses for accuracy c. Create a plan to reduce your average price for the next year d. Develop a plan to make additional principle payments on your bank loan during the next yeararrow_forwardAnalyse and comment on the impact of the following events on a companies balance sheet, income statement and cash flow statement. E. g. Company purchases Machinery for $100,000 in cash. Effect. Obvious impact Fixed Asset increased, Balance sheet affected. Company will start recording depreciation expense in Income Statement Cash Outfi ow will reduce balance of cash on balance sheet. Current Ratio likely affected adversely and Working Capital. Analysis. Company may experience increase in Accounts Payable because of such a substantial cash outflow. This will affect Current Liabilities. Or. Company may have to seek short term loan from the bank as a back up in case there is any disturbance in receivables in the future. To counter this substantial cash outflow. Company should have negotiated with a bank a low interest loan to purchase machine over time in instalments. 1)A Manufacturing company ABC: relies on several suppliers for raw materials, often these materials are purchased on 90…arrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT