ZumBahlen Inc. is considering the following mutually exclusive projects: Year Project A Cash Flow Project B Cash Flow 0 -$5,000 -$5,000 1 200 3,000 2 800 3,000 3 3,000 800 4 5,000 200 At what cost of capital will the net present value of the two projects be the same? (That is, what is the "crossover" rate?)
You are the senior accountant for the Smith Company. Using the information provided, prepare a statement of cash flows using the indirect method. (see attached) Additional information is as follows: Equipment was sold for $26 during the year, which had cost $30 accumulated depreciation of $10. Cash dividends of
See attached file for full problem description.
1) Why abandon historical cost? How does SFAC 7 fit with the concepts framework? 2) Which more accurately meets the requirements of the qualities of accounting information, discounted cash flows or using the present value at the risk-free rate of expected cash flows? Why? Which qualities matter most in your answer?
Part One: 1) Why are adjusting entries necessary? 2) The analysis process for preparing adjusting entries involves two basic steps. Identify the two steps and explain why both are necessary. 3) What is the purpose of closing entries? 4) What is the purpose of the post-closing trial balance? Explain where the informat
From the following data, compute: a) Net cash flow provided (used) by operating activities. b) Net cash flow provided (used) by investing activities c) Net cash flow provided (used) by financing activities. d) Net increase (decrease) in cash during the year. e) The cash balance at the end of the year. Cash receipts from:
Prepare a cash flows statement using the indirect method, also disclosing any noncash investing and financing activities. Use the following transactions for the year end. a. The loss on the cash sale of equipment is $5125, see (b) b. sold equipment costing $46875, with accum depr of $28125 for $13625 in cash. c. purchased equ
From the following data, compute: Net cash flow provided (used) by operating activities, Net cash flow provided (used) by investing activities, Net cash flow provided (used) by financing activities, Net increase (decrease) in cash during the year, The cash balance at the end of the year. Cash receipts from: Customers $270,00
Statement of Cash Flow. See attached file for full problem description. The Four Star Café Condensed Balance Sheets December 31, 2001 and 2002 2001 2002 Cash $15,000 $70,000 Marketable Securities $5,000 10000 Accounts receivable 14000 10000 Inventory 20000 24000 Investment 10000 1
If I had to prepare a statement of cash flows? Indirect method, and perform Analysis how would you go by doing this. (A) Alvin and Cory Jackson Comparative Balance Sheets December 31 Assets 2006 2005 Cash $ 31,000 $ 13,000 Accounts receivable
Prepare the Spartan Inn's SCF for 2002 using the indirect method. See attached file for full problem description. Spartan Inn Condensed Balance Sheets December 31, 2001 and 2002 Assets 2001 2002 Current Assets Cash $30,000 $40,000 Marketable securities 50000 50000 Acco
Could you view the problem attached and help to resolve? I started to put the information together but I am getting stuck in a couple of places that I cannot figure out. The Net cash provided by operating activities is supposed to be $17,500 and I don't know how.
Company A is undertaking a thorough cash flow analysis. It has been proposed by management that the firm expand by raising $6million in long term debt markets. All of this would be immediately invested in new fixed assets. The proposed bond issue would carry a 10 percent interest rate and have a maturity period of 20 years.
The net income reported on an income statement for the current year was $65,000. Depreciation recorded on fixed assets for the year was $25,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a stat
I plan to work for 10 years, quit my job and then travel the world. I save $1,000 a year for the first 5 years and $2,000 a year for the next 5 years. These savings cash flows will start one year from now. I received a $5,000 gift. If I put the gift now, and the future savings when they start, into an account which pays 8 p
1. We have three possible projects and we can invest in only one project. Suppose our weighted cost of capital is 7% and each project requires an investment of $10,000. Using payback, NPV and IRR decide which project we should select and explain why. Project Year 1 Year 2 Year 3 Year 4 A $9,000 42,000 $1,000 $0 B 4,000 4,
The balance sheets for 2004 and 2003 for Columbia Sportswear are attached. In addition, Columbia reported the following information: ? 2004 net income was $138,624. Tax expense was $76,297. ? Columbia did not pay dividends in 2004. ? Columbia sold property, plant and equipment for $40 cash and recognized a loss of $541 on th
Based on an MBA project, a local environmental activist has asked you to evaluate the potential purchase of a company that manufacturers solar energy systems for homes, Solar Siding, Inc. Below, you have projections for the next three years of business, 2007, 2008, and 2009 for Solar Siding as a stand-alone business (if your cl
A zero-coupon bond pays no interest to the bondholder, but can be purchased for much less than par value. At maturity, the holder receives the par value. Suppose Mr. Investor purchases a $5,000 par municipal bond that will mature in 15 years. If he pays $1,700 for the bond, what will his IRR be over the 15 year time horizon?
PROBLEM 11-2 Explain what effect the following transactions would have on cash and how they would be shown in a cash flow statement. 1. A $2,000,000 piece of equipment is purchased with the proceeds of a new 12- month note. 2. Mortgage bonds are retired with $790,000 cash and the proceeds of an issue of 150,000 shares of
Kids n' Caboodle, a children's clothing store had the following cash receipts and disbursements for its first year of operations; Receipts Cash sales $155,000 Loan proceeds 21,000 Total Receipts
Explain what effect the following transactions would have on cash and how they would be shown in a cash flow statement. 1. $2,000,000 piece of equipment is purchased with the proceeds of a new 12 month note 2. Mortgage bonds are retired with $790,000 cash and the proceeds of an issue of 150,000 shares of common stock. 3.
1. Net cash flow provided (used) by operating activities. 2. Net cash flow provided (used) by investing activities. 3. Net cash flow provided (used) by financing activities. 4. Net increase (decrease) in cash during the year. 5. The cash balance at the end of the year. Cash receipts from: Customers . . . . . . . . . . .
The balance sheets for Hafner Company showed the following information. Additional information concerning transactions and events during 2008 are presented below. Hafner Company Balance Sheet December 31 2008 2007 Cash $ 30,900 $ 10,200 Accounts receivable (net) 43,300 20,300 Inventor
Given the following cash flows, what is the present value if the discount rate is 8%? Year 1 2 3 4 Cash Flow $400 $250 $900 $1925 a. $1,415.07 b. $2,714.09 c. $2,865.70 d. $3,058.96 e. $3,222.62
Can someone help me solve this problem to project the free cash flows based on this financial data on the attached Excel Spreadsheet? Fill in the yellow cells with formulas to project 2004 free cash flows. Follow the hints on the spreadsheets - the file should open to the best starting point.
Explain why statements of cash flows are important when assessing the financial strength of an organization.
Complete Problem set 7 (attached in this post). From the information in Problem 7, prepare a statement of cash flows using the indirect method. Using a Word document, write a paper discussing how the different sections of the statement of cash flows assist different sets of users. Also, discuss the merits of using the direct met
DQ. 1 As an investor, does one section of the statement of cash flows interest you more than other sections? Why or why not? DQ. 2 Does your answer to DQ 1 change if you are management? A creditor? Why or why not? DQ. 3 Which method do you prefer, the direct or indirect? Why? DQ. 4 In what ways does the statement of ca
The comparative balance sheet of True-Tread Flooring Co. for June 30, 2006 and 2005, is as follows: __________________________________June 30, 2006_________June 30, 2005______ Assets Cash $ 68,900