Net cash flow from operating activities

Assignment Help Financial Management
Reference no: EM131055572

At the end of the first year of operations, the balance sheet of Midwood Medical Supply showed the following account balances: Accounts Receivable, $4,900; Accounts Payable, $5,900; Inventory, $2,900; and Unexpired Insurance, $1,900. The corporation reported net income of $78,000 for the year, including depreciation expense of $4,900, and uses the indirect method of computing net cash flow from operating activities. Solely on the basis of this information, net cash flow from operating activities is:

$81,000.

$76,100.

$77,000.

$79,100.

Reference no: EM131055572

Questions Cloud

Target debt- equity ratio-what is the cost of equity : Blue Bull, Inc., has a target debt- equity ratio of .55. Its WACC is 8.1 percent, and the tax rate is 35 percent. a. If the company’s cost of equity is 11 percent, what is its pretax cost of debt? b. If the aftertax cost of debt is 3.8 percent, what ..
Knowledge of job design : However, rather than increase job performance, the changes resulted in more complaintsfrom employees, higher absenteeism due to stress and a slight increase in turnover. Based on your knowledge of job design, explain why these results may have occ..
Estimates for its new gear assembly project : Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,200 per unit; variable costs = $240 per unit; fixed costs = $2.6 million; quantity = 70,000 units. Suppose the company believes all of its estimates ..
Currently pays dividend : A company currently pays a dividend of $3.25 per share (D0 = $3.25). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.1..
Net cash flow from operating activities : At the end of the first year of operations, the balance sheet of Midwood Medical Supply showed the following account balances: Accounts Receivable, $4,900; Accounts Payable, $5,900; Inventory, $2,900; and Unexpired Insurance, $1,900. The corporation ..
What is held to maturity and what is yield to call : St. Charity Hospital issued a 12 percent annual payment bind for $1,000, which now has 10 years remaining to maturity and sells for $1,100.00. The vine has a call provision that allows the bond to be called in four years for the price of $1,060. what..
Representation of africa in both books : Representation of Africa in both books - Cultures and economies of African societies.
Human resource generalist : You have been hired by a company as a Human Resource Generalist to create a Human Resources Department for the organization. You will be the only employee in this department for the foreseeable future.
What is equivalent uniform annual cost of machine : A company must decide whether to buy Machine A or Machine B. What is the equivalent uniform annual cost (EUAC) of Machine A? What is the equivalent uniform annual cost (EUAC) of Machine B?

Reviews

Write a Review

Financial Management Questions & Answers

  What will be the percentage change in the bond price

A bond has a coupon rate of 8 percent, 7 years to maturity, semiannual interest payments, and a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what will be the percentage change in the bond price?

  Calculate tax paid on gain on disposal

Genetic insights co. Purchases an asset for $12752. This qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respecti..

  What was the inflation rate of airfare

As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was 583.9 (using a base year of 1914 = 100). The CPI for Airfare in 2264 was 615.8. Based on this data, what was the inflation rate of airfare from 2263 to 2264?

  Volatile business cycles

Suppose a firm finds itself as the target of a possible hostile takeover. An outside investor has acquired a major stake of shares and is threatening to exert influence on the broad. If you were to look at a firm's distribution of cash to investors o..

  Dividend growth rate is expected to be constant

Ackert Company's last dividend was $0.50. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (r) is 12.0%. What is the best estimat..

  Purchased a zero-coupon bond one year ago

You purchased a zero-coupon bond one year ago for $281.33. The market interest rate is now 7 percent. If the bond had 19 years to maturity when you originally purchased it, what was your total return for the past year?

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  What is the difference in their offers in terms of dollars

Your computer manufacturing firm must purchase 11,000 keyboards from a supplier. One supplier demands a payment of $121,000 today plus $11 per keyboard payable in one year. Another supplier will charge $23 per keyboard, also payable in one year. The ..

  Type of factor that drives stock prices

Which of the following is not a type of factor that drives stock prices, according to your text?

  Country risk analysis

Country Risk Analysis. If the potential return is high enough, any degree of country risk can be tolerated. Do you agree with this statement? Why or why not? Do you think that a proper country risk analysis can replace a capital budgeting analysis of..

  Bond equivalent yield and discount yield

The treasurer of a large corporation wants to invest $35 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 4.39 percent; that is, the EAR for this investment is 4.39 per..

  Rate trading at premium or discount relative to spot rate

Assume that interest rate parity holds and that 90-day risk-free securities yield 6% in the United States and 6.3% in Germany. In the spot market, 1 euro equals $1.40 dollar. Is the 90-day forward rate trading at a premium or discount relative to the..

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