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Statement of Cash Flows

Statement of cash flows and current ratios

1. Ace Inc. declared and distributed a 10% stock dividend during the year. Explain how, if at all, you think this transaction should be reported on a statement of cash flows 2. A company has a current ratio of 1.25 but an acid-test (or quick) ratio of only 0.65. How can this difference in the two ratios be explained? What co

After-tax cash flow problem

Moore & Moore (MM) is considering the purchase of a new machine for $50,000, installed. MM will use the MACRS accelerated method to depreciate the machine, which is classified as 5-year property (see the following MACRS table for depreciation rates). MM expects to sell the machine at the end of its 4-year operating life for $10,

Description of Free Cash flows

A company generated free cash flow of $ 1 million last year and expects it to grow at a constant rate of 8% indefinitely. The company's WACC is 10%. a. Calculate the company's free cash flow for next year. b. Calculate the value of the company's operations. c. How much would the value of operations change if expected gro

Cash flows from operating activities (indirect)

Please see pdf file. Exercise 12-4: Cash flows from operating activities (indirect) L.O. P2 Olhstead Company's calendar-year 2008 income statement shows the following: Net Income, $374,000; Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000. An examination of the company's cur

Statement of cash flows (indirect method)

Please see pdf file. Forten Company, a merchandiser, recently completed its calendar-year 2008 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash p

Prepare a Sources-and-uses-of-cash Statement

Prepare a Sources-and-uses-of-cash Statement. ?Explain what conclusions you are able to make regarding the cash position of this firm after reviewing the information you prepared. S/B CORPORATION Balance Sheet December 31, 20X2 (in thousands) 20X2 20X1 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . .. . .

What we can tell from looking at statement of cash flow?

What we can tell from looking at a company's statement of cash flows: Let's say that we have net income of $50,000 Increase in accounts receivable of ($15,000) Increase in inventory of ($30,000) Increase in accounts payable of $10,000 Net cash flow from operations $15,000 Now, here's what I want you to do. Look beyond

Computation of Cash Flow of Corporate Earnings

Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and that it is in a 30 percent tax bracket. Compute its cash flow using the format below. Earnings before depreciation and taxes. _____ Depreciation. _____ Earni

Calculating expected cash flow

Mountain View Hospital has purchased new lab equipment for $146,460. The equipment is expected to last for three years and to provide cash inflows as follows: Year 1 $47,000 Year 2 $64,000 Year 3 ? Required : Assuming that the equipment will yield exactly a 14% rate of return, what is the expected cash inflow for Yea

Statement of Cash Flows: Burtric Company Example

Burtric Company's net income last year was $98,000. Changes in the company's balance sheet accounts for the year appear below: Increases are without brackets and decreases are bracketed. Debit balances: Cash $ 24,000 Accounts receivable 15,000 Inventory (18,000) Prepaid expenses (6,000) Long-term investm

Statement of Cash Flows for Taguchi Company

I need help with the attached information. Here are comparative balance sheets for Taguchi Company. TAGUCHI COMPANY Comparative Balance Sheets December 31 Assets 2007 2006 Cash $ 73,000 $ 22,000 Accounts receivable 85,000 76,000 Inventories 170,000 189,000 Land 75,000

Statement of Cash Flows

I need help understanding and preparing a statement of cash flows using the indirect method from a statement of cash flows. Please see the attached file. Ron Nord and Lisa Smith are examining the following statement of cash flows for Carpino Company for the year ended January 31, 2007. CARPINO COMPANY Statement of Cash Fl

Tovar Corporation: Cash Flow Statement

Please note that values are different here than on the attachment problem 14-4B. Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2008, using the indirect method. The three accounts shown below appear in the general ledger of Tovar Corp.

Net Present Value and Abandoning

We are examining a new project. We expect to sell 750 units at $20 net cash flow apiece for year 1. We expect to sell 250 units in year 2 at $20 net cash flow apiece. The relevant discount rate is 20%, and the initial investment is $55,000. a) If success and failure are equally likely, what is the NPV of the project? Consider

Iridium Corp: Sunk cost, opportunity cost and relevant cash flow

Iridium Corp. has spent $3.5 billion over the past decade developing a satellite based telecommunication system. It is currently trying to decide whether to spend an additional $350 million on the project. The firm expects that this outlay will finish the project and will generate cash flow of $15 million per year over the nex

Free cash flow

Joe Novak Corporation reports the following information: Net cash provided by operating activities $215,000 Average current liabilities $150,000 Average long term liabilities $100,000 Dividends Paid $60,000 Capital expenditures

Logan Company: Statement of cash flows

The comparative balance sheets for Logan Company appear below: LOGAN COMPANY Comparative Balance Sheet Dec. 31, 2003 Dec. 31, 2002 Assets Cash $61,000 $12,000 Accounts receivable 5,000 8,000 Inventory 11,000

Cash flow statement

Please see attached. Presented below is information related to the operations of Bryers Corporation. December 2006 2005 2006_ Cash $ 63,000 $ 40,000 Sales $420,000 Accounts receivable 58,000 48,000 Cost of goods sold 190,000 Inventory 37,000 22,000 Gross profit 230,000 Prepaid expenses 16,000 20,000 De

Statement of Cash Flows-Little Bit, Inc.

Complete problem 4.5 below. Refer to Exhibit 4.1 to create your statement of cash flows. Submit the completed statement of cash flows and a 200- to 300-word analysis of the statement.

Problem 8: Prepare a cash flow statement using the direct method

Please see attached file. Problem 8: The owner of a small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the Cash account in his general ledger. Balance at beginning of year $3,450 Collecti