Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:1. Leroy, Inc.'s balance sheets for 2022 and 2023 as well as income statement are listed below.
Leroy, Inc.
2022 and 2023 Balance Sheets (in thousand)
2022
2023
2022
2023
Cash
Accounts Rec.
$ 434
$ 567
Accounts Payable $3,808
$3,598
3,696
4,277
Note Payable
140
Inventory
4,585
5,390
Total
$3,948
$3,598
Total
$ 8,715
$10,234
Long-term Debt
$ 11,025
$11,340
Net Fixed Assets
$15,344
$14,938
Common Stock
7,000
7,350
Retained Earning
S 2,086
$ 2,884
Total Assets
$24,059
$25,172
Tot. Liab. & Equity $24,059
$25,172
Leroy, Inc.
Net Sales
2023 Income Statement
Less: Cost of Goods Sold
Less: Depreciation
EBIT
Less: Interest Paid
Taxable Income
Less: Taxes
Net Income
$13,454
8,834
1,918
2,702
882
$ 1,820
637
$1,183
(a) From accounting's perspective, what is the cash flow from operating activities in 2023?
(b) From accounting's perspective, what is the cash flow from investment activities in 2023?
(c) What is the dividend amount paid in 2023? From accounting's perspective, what is the cash flow
from financing activities in 2023?
(d) From your answers to (a) to (c) figure out the change in cash flow in 2021, and show it is consistent
with what is reported in the balance sheet.
(e) From finance perspective, what is the change in the net working capital from 2022 to 2023?
(f) From finance perspective, what is the operating cash flow for 2023?
(g) From finance perspective, what is the cash flow from firm's asset for 2023?
(h) Compute Cash Flows to Shareholders, and Cash Flows to Bondholders.
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