Compute cash flows from operating activities for bubblico

Assignment Help Accounting Basics
Reference no: EM131987642

Question - A recent annual report for BubbliCo contained the following information for the period (dollars in millions):

Net income $5,158

Depreciation and amortization 1,559

Increase in accounts receivable 569

Increase in inventory 358

Increase in prepaid expense 71

Increase in accounts payable 725

Decrease in taxes payable 199

Increase in other current liabilities 757

Cash dividends paid 2,556

Treasury stock purchased 4,725

Required:

1. Compute cash flows from operating activities for BubbliCo using the indirect method.

2. Compute the quality of income ratio.

Reference no: EM131987642

Questions Cloud

Approach to build the culture of change the team : What would be your tactics to overcome these challenges? What would be your approach to build the culture of change among the team?
According to the approved capital budgeting guidelines : According to the approved capital budgeting guidelines of the company, QMC uses both NPV and MIRR to evaluate investment projects.
People expectations to ensure their positive attitude : What would be your approach to make the Jobs as much as possible aligned with people expectations to ensure their positive attitude?
Estimate that the demand for bicycles : Zed and Adrian estimate that the demand for bicycles this season will be 20, 30, 40, or 50 bicycles with probabilities of 0.2, 0.4, 0.3, and 0.1 respectively.
Compute cash flows from operating activities for bubblico : Compute cash flows from operating activities for BubbliCo using the indirect method. Compute the quality of income ratio
How would you overcome the anticipated barriers : Describe globalization and its benefits to business operations. How would you overcome the anticipated barriers to communication?
How would you apply yield management concepts to a machine : How would you apply yield management concepts to a barbershop? How would you apply yield management concepts to a soft drink vending machine?
New types of organizational structures : On Organizing and Authority, what special attributes must supervisors have to be successful in some of the new types of organizational structures?
Impact the effectiveness of organizations : You have been asked to identify external and internal influences that impact the effectiveness of organizations.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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