What was the net cash flow from operating activity

Assignment Help Financial Management
Reference no: EM131052340

In 2012, Rector Industries generated net income of $87,800. The company reported depreciation expense of $6,500 and paid dividends of $2,500. During the year, accounts payables increased by $1,300, accounts receivables increased by $2,200, inventory increased by $1,400, and net fixed assets increased by $8,000. Rector has no debt and thus incurred no interest expense. What was the net cash flow from operating activity?

Reference no: EM131052340

Questions Cloud

Changes in rate of taxation-weighted average cost of capital : The effect of tax rate on WACC: K. Bell Jewelers wishes to exlore the effect on its cost of capital of the rate at which the company pays taxes. The firm wishes to maintain a capital structure of 40% debt, 10% preferred stock, and 50% common stock. C..
Supply chain strategies of the two types of companies : A horizontally integrated company is a corporation consisting of a number of companies, each of which is acting independently. The corporation provides branding, direction, andgeneral strategy. Compare and contrast the supply chain strategies of t..
The vvh radiology department currently uses : The VVH radiology department currently uses FCFS to determine how to sequence patient x-rays. On a typical day, the department collects data related to patient x-rays. Use these data to compare various sequencing rules.
What equity multiplier is required to achieve desired rate : In recent years, Lantana Enterprises has had a 40 percent dividend payout ratio and has generated a 6 percent profit margin. They would like to continue to maintain both of these while achieving a sustainable growth rate of 4.5 percent. Lantana has a..
What was the net cash flow from operating activity : In 2012, Rector Industries generated net income of $87,800. The company reported depreciation expense of $6,500 and paid dividends of $2,500. During the year, accounts payables increased by $1,300, accounts receivables increased by $2,200, inventory ..
Algorithm is based on vehicular ad hoc network : I have an algorithm need to be simulated in ns2/ns3, the algorithm is based on vehicular ad hoc network. The objective of the algorithm is predict the next AP availability and capacity in VANET scenario.
When evaluating the validity of assumptions : Well researched data and solid assumptions are at the heart of good budgets. How should a Manager go about creating assumptions for their budget that will ensure it gets approved? What should a Manager look for when evaluating the validity of assumpt..
Both my net profit margin and my total asset : Both my Net Profit Margin and my Total Asset Turnover are expected to decrease over the next year. What impact, if any, will this likely have on my Return on Assets?
Enhance the competitveness of the enterprise : Are there any ways in which the firm might be able to improve its operating efficiency? If so what operating strategies could it pursue and how might they enhance the competitveness of the enterprise?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Alternative to give a better outcome at the option maturity

A speculator can choose between buying 600 shares of a stock for $40 per share and buying 1600 European call options on the stock with a strike price of $45 for $4 per option. For second alternative to give a better outcome at the option maturity, th..

  Announced it is increasing its annual dividend

Global Logistics just announced it is increasing its annual dividend to $1.68 next year and establishing a policy whereby the dividend will increase by 3.25 percent annually thereafter. How much will one share of this stock be worth ten years from no..

  What is the estimated value per share of boehms stock

Boehm Incorporated is expected to pay a $3.80 per share dividend at the end of this year (i.e., D1 = $3.80). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 19%. What is the estimated..

  Preparing cash budgets and forecasting financial statements

What are the benefits and problems or challengers that are associated with preparing cash budgets and forecasting financial statements? Please provide details and examples to help me better understand.

  Using the labor costs shown in the income statements

A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Assume that Baldwin had a productivity index of 112% and that Chester had a productivity index of 103%.

  Best estimate of the companys cost of equity

Stock in Daenerys Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 5 percent. The company’s most recent dividend was $1.40 per share, and dividends are expected to grow at an annual rate of 7 perc..

  Suppose a corporation can change its depreciation method

Suppose a corporation can change its depreciation method so that its tax payments will decrease by $5,000 this year but increase by $5,000 next year

  Variable rate mortgage with an initial interest rate

During February 2016, John Smith financed the purchase of his new home by borrowing $250,000 from the Bank of America (BA). Although he was offered a conventional 30-year loan at a fixed rate of 5.4 percent, Mr. Smith chose BA's “5/30” variable rate ..

  Regarding mortgage backed securities

Which of the following is not true regarding mortgage backed securities? securitization provides liquidy to the mortgage markets and makes it possible for banks to loan more money to home buyers .

  Weighted average cost of capital-what is the horizon value

Barnette Inc.'s free cash flows are expected to be unstable during the next few years while the company undergoes restructuring. However, FCF is expected to be $50 million in Year 5, i.e., FCF at t = 5 equals $50 million, and the FCF growth rate is e..

  What is the annually compounded yield to maturity

Suppose you own a ten year bond that pays 5% annually with a two year call that is currently trading for $95. After maturity, the bond can be called for $105. What is the annually compounded yield to maturity? What is the annually compounded yield to..

  Value of the investment today if appropriate interest rate

if you have an investment that pays you $4000 two years from today,$5000 three years from today, and $6000 four years today. What is the value of the investment today if the appropriate interest rate 6% per year compounded annually?

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