Prepare a schedule computing the net cash flow

Assignment Help Financial Management
Reference no: EM13985391

Cash flows from operating activities; presented below is the income statement of Angola, Inc.

Sales ................ $324,000
Cost of goods sold .........$214,000
Gross profit ............$110,000
Operating expenses .........$67,000
Income before income taxes ......$43,000
Income taxes ...........$17,200
Net income ............ $25,800

In addition, the following information related to net changes in working capital is presented.
Debit Credit
Cash ...............$10,600
Accounts receivable .........$2,400
Inventories ............$3,600
Salaries payable (operating expenses) ...$12,000
Accounts payable ..........$15,000
Income taxes payable ........$1,400
Depreciation expense for the year was ...$14,700
Deferred tax liability account increased .$1,800

Required:

Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows-(b) using the direct method.

Reference no: EM13985391

Questions Cloud

Determine the time it took the atom to move : From the information above, determine The value of the potential difference through which the atom was accelerated. The time it took the atom to move along the semi-circular part of its path in the instrument.
Determine the limit distribution : Show that m(1 - Vm) converges in distribution as m → ∞, and determine the limit distribution.
What is the minimum index of refraction for the liquid : A ray of light, emitted beneath the surface of an unknown liquid with air above it, undergoes total internal reflection as shown in the figure. What is the minimum index of refraction for the liquid?
Determine the limit distribution : Let N , X1, X2, . . . be independent random variables such that N ∈ Po(λ) and Xk ∈ Po(µ), k = 1, 2, . . . . Determine the limit distribution of Y = X1 + X2 + · · · + XN as λ → ∞ and µ → 0 such that λ · µ → γ > 0. (The sum is zero for N = 0.)
Prepare a schedule computing the net cash flow : Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows-(b) using the direct method.
What is direction of the loop will want to rotate : Determine the magnitude of the torque that is being exerted on the loop and the direction the loop will want to rotate. Indicate the direction of rotation through the diagram.
Describe a time when your job satisfaction was impacted : Describe a time when your job satisfaction was impacted by communication. What were the circumstances that caused a change in satisfaction? Where do you think the issues were in the communication process itself
Quantitative analysis of an alternative hedging strategy : What mistakes did your boss make in devising the futures contract liquidation strategy? Be specific as to how the liquidation strategy should have been altered - What mistakes did your boss make in setting the hedge in December
What is craft knowledge : 1.What is "craft" knowledge and how does it differ from thinking of teaching and leading as applied science? (350 words with references) 2.What is the Theory of Gemeinschaft and Gesellschaft? Are gesellschaft values appropriate for schools?(350 word..

Reviews

Write a Review

Financial Management Questions & Answers

  Differences between mergers-leveraged-management buyouts

Describe the basic differences between mergers, leveraged buyouts, management buyouts, divestitures, and spin-offs.

  Use the compound interest formula and the annuity formula

Luis has $190,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to "roll over" his assets to a new account. Luis also plans to put $3000/quarter into the new account until h..

  Expected return on equity of otherwise identical equity firm

Locomotive Corporation is planning to repurchase part of its common stock by issuing corporate debt. As a result, the firm’s debt–equity ratio is expected to rise from 30 percent to 50 percent. The firm currently has $3.3 million worth of debt outsta..

  Planning to save for retirement

You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $300 a month in a bond account. The return of the stock account is expected to be 11% APR compounded monthly, and the bond..

  Taxable income must be the interest expense

Little Books Inc. recently reported $12 million of net income. Its EBIT was $20.4 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement and then fill in the known values. Then divide $..

  Decision rule for investment purposes

Using the NPV as a decision rule for investment purposes takes into account the following considerations:

  Considering two investment proposals

Thompson Manufacturing is considering two investment proposals. The first involves a quality improvement project, and the second is about an advertising campaign. Suppose the hurdle rate of the firm is 10%. Calculate the cash flows of the “incrementa..

  What would be the financial institutions net savings

An interest rate cap of 7% with a notational value of $18.9 million is available for a premium of 0.58%. The same notational value 3% floor is available for a premium of 0.64%. If current interest rates are at 8%, what would be the a financial instit..

  External sources of funding favor a high or low payout ratio

Does Taxes on capital gains are deferred until the capital gain is realized, but taxes on dividends are due in the year in which they are received favor a high or low payout ratio? Does A firm has an established credit line for access to external sou..

  About the net present value method of selecting projects

For two mutually exclusive projects, the net present value and internal rate of return methods select different projects if the required rate of return is greater than the discount rate at which the two net present value profiles intersect. If projec..

  What is the companys stock price per share today

ABC Tec Inc. is expected to produce $100 million FCF (free cash flow) at the end of year 3, $150 million FCF at the end of year 4, $180 million at the end of year 5 and thereafter the FCF is expected to grow at a constant rate of 4%. No FCFs ($0) are..

  Calculate the internal rate of return and profibility index

Fijisawa inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. the initial outlay would be $2,010,000 and the project would generate cash flows of $460,000 per year for..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd