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Statement of Cash Flows

Prepare Cash Flow Statement for Nevada Estates

1. These are the following data from the accounting records of Nevada Estates: Depreciation Expense 15,900 Payment of Income Taxes 24,500 Collections of Accounts Receivable 167,200 Purchase of Treasury Stock 40,000 Declaration of Stock Dividend 65,000 Loss on Sale of Plant Assets 8,400 Collection of Dividend Re

Question 10-5

Assume that a new project will annually generate revenues of $2,000,000. Cash expenses including both fixed and variable costs will be $800,000, and depreciation will increase by $200,000 per year. In addition, let's assume that the firm's marginal tax rate is 34 percent. Calculate the operating cash flows.

Depreciation and Cash flow

Howell Magnetic`s Corporation is going to purchase an asset for $400,000 that will produce $180,000 per year for the next four years in earnings before depreciation and taxes.. The asset will be depreciated using the three-year MACRS depreciation schedule. (This represents four years of depreciation based on the half-year conven

Johnson's Scuba: Format a Statement of cash flows

A2. (Statement of cash flows) Johnson's accountant also presented all of the items in the statement of cash flows in alphabetical order. Please put these items in the correct format for a statement of cash flows for Johnson's Scuba Co. for the year ending January 31. All data are in thousands of dollars. Accounts payable i

Determining Cash Flows from Operating Activities

20,000 Depreciation expense 10,000 Gain on sale of equipment 70,000 Accrual based net income 20,000 begining accounts receivable balance 30,000 ending accounts receivable balance 40,000 beginning accounts payable balance 10,000 ending accounts payable balance How much is cash flows from operating activities? Please s

Financial Statement Ratio Analysis

Use the financial statements in attachment to perform the following: a. Calculate the solvency ratios, current ratio, qucik ratio, net working capital, and working capital requirements for each of the five years. Discuss and interpret the trends you see. b. Calculate the cash flow from operations for 2001 through 2004 and

Managerial Finance

Superior Manufacturing is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 55% of sales. Indirect incremental costs are estimated at $80,000 a year. The project requires a new

Cash Flow Statement Analysis

What information can a user of financial information obtain from the statement of cash flows and which method of reporting do you prefer? What are the three major activities presented in the statement? Provide examples of each of the activities. Is it possible to have a positive net income and negative cash flow from operati

Calculate Terminal Cash Flow in analyzing the purchase of new equipment

You are analyzing the purchase of new equipment. Since you are not an expert on this type of equipment, you hire a consulting firm to make recommendations. The consultant charged you $2,500 and recommended the purchase of the latest model from Equipment Corp. of America. The equipment costs $60,000, and it will cost another $12,

Prepare & analyze Statement of Cash Flows: Indirect Method

See attached file. Flanders Corporation's income statement for the year ended June 30, 20x8 and its a comparative balance sheets as if June 30, 20x8 and 20x7 are attached. During 20x8, the corporation sold equipment that cost $48,000, on which it had accumulated depreciation of $34,000, at a loss of $8,000. It also purchased

Important information about Classifying Cash Flow Transactions

Classify each of the following as an operating activity (OA), an investing activity (IA), a financing activity (FA), or a non-cash flow transaction (NT). In addition, for each transaction, state whether it is a cash inflow (CI) or cash outflow (CO). For example, payments to employees would be (OA) and (CO). Proceeds from issu

Cash Flow Statement for Starbucks

I need assistance understanding the cash flow statements for Starbucks for 2008. Below is the actual question I need answered. "Review Starbuck's statements of cash flow and foot notes and explain how each current account has affected cash management strategies." Here is a link to SBUX financials 2008: http://www.marke

Details regarding cash flows

The Rogers Corporation has a gross profit of $880,000 and $360,000 in deprecation expense. The Evans Corporation also has $880,000 in gross profit, with $60,000 in depreciation expense. Selling and administrative expense is $120,000 for each company. Given the tax rate is 40 percent, compute the cash flow for both companies.

Free Cash Flow for TSW Inc

TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and

Operating Cash flow

As a member of Gamma Corp financial staff, you must estimate the Year 1 operating net cash flow for a proposed project with the following data. What is the Year 1 operating cash flow? Sales $33,000 Depreciation $10,000 Other operating costs $17,000 Interest expense $4,000 Tax rate 35%

Statement of Cash Flows - Indirect Method

Plank Company Comparative Balance Sheet December 31 2004 2003 Cash $ 64,000 $ 36,000 Accounts receivable, net 53,000 57,000 Inventory 171,000 123,000 Land 180,000 285,000 Building

Prepare A Statement of Cash Flows (Indirect Method)

Biven Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents............................ $ 35 $ 30 Accounts receivable..................................... 54 49 Inventory..................

Crosby Corporation Cash Flow Statement

Ch. 2 of Foundations of Financial Management Complete Problems 27, 28, and 29 on pp. 51-53. 27. Prepare a statement of cash flows for the Crosby Corporation. Follow the general procedures indicated in Table 2-10 on page 38 . 28. Describe the general relationship between net income and net cash flows from operating activ

Statement of cash flow and its purposes

The statement of cashflows is one of the basic financial statements mandated by GAAP but is also an important topic in managerial accounting. Why do you think that is? Provide an argument for the statement of cashflows as a managerial technique.

Reporting Net Cash on a Statement of Cash Flows

Please help with the following problem. Twin House Inc, reported net income of $753,000 for the year-ended December 31, 20X8. Twin House's financial statements reflected the following information: Depreciation expense $150,000 Gain on sale of trading securities 6,000 Goodwill impairment 75,000 Decrease in account

6 short answer questions for accounting.

1. How could a firm that is very profitable on its income statement find it difficult to pay its expenses (commitments) as they come due? 2. Explain how depreciation relates to income and cash flow. 3. Consider gains or losses on non-recurring asset sales. How could they mislead management and potential investors on a ca

Cash Flow-Operating Activites using the Direct Method

Please help the book I have does a very poor job of explaining how to get from the info below to a no kidding operating cash flow! The 2010 accounting records of Spaulding Transport reveal these transactions: Payment of interest $10,000 Cash Sales 48,000 Receipt of dividend reven

Cash Flows Statement

Prepare statement of cash flows (indirect method) using balance sheet data. Presented below are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2004. Then write a 350-500 word paper discussing the difference sections of the statement of cash flows assist different sets of users. Also discuss the

Statement of Cash Flows for Creative Works Company

Presented below are the comparative balance sheets for Creative Works Company as of December 31. Creative Works Company Comparative Balance Sheets 31-Dec Assets 2006 2005 Cash $38,000 $45,000 Accounts receivable $4