What are differences between accounting profit and cash flow

Assignment Help Financial Management

Reference no: EM13919617

The Flying Lion Corporation reported the following data on the income statement of one of its divisions. Flying Lion Corporation has other profitable divisions. 20X2 20X1 Net sales $800,000 $500,000 Cost of goods sold 560,000 320,000 Operating expenses 75,000 56,000 Depreciation 300,000 200,000 Tax rate (%) 30 30 1. Prepare an income statement for each year. 2. Determine the operating cash flow during each year. 3. What are the differences between accounting profit and cash flow?

Reference no: EM13919617

Questions Cloud

Residual dividend policy-what will be total dividend payment : The capital budget of Creative Ventures Inc. is $1,000,000. The company wants to maintain a target capital structure that is 30% debt and 70% equity. The company forecasts that its net income this year will be $800,000. If the company follows a resid..

Mathematical expression for the probability : a) Write the mathematical expression for the probability density function of the percent discount. b) What is the probability that a new buyer will expect a discount that is between 5% and 12%?

Consultant to help determine their cost of capital : Bartlett Company’s target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of common using reinvested earnings is 12.75%. The firm will not be issui..

Respond to joe question regarding wong liability : Kim Wong received $800 in advance for tutoring fees when she agreed to help Joe Pratt with his introductory accounting course.

What are differences between accounting profit and cash flow : The Flying Lion Corporation reported the following data on the income statement of one of its divisions. Flying Lion Corporation has other profitable divisions. 20X2 20X1 Net sales $800,000 $500,000 Cost of goods sold 560,000 320,000 Operating expens..

Encoding emotional experiences : The _____ plays an important role in encoding emotional experiences, such as fear responses.

Perpetual preferred stock currently sells : A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost ..

Determine whether the polynomial function : Please be sure to save at least once every 15 minutes. If you leave this page without saving, or if your session times out, any answers you have not saved will be lost. The Submit for Grading button will become available once you've answered all q..

What are some key programs in lean manufacturing : What aspects of Google's approach to innovation can be seen at Libbey Glass Company and Westinghouse Electric Company? The first of the three key principles Google followed was focus on the user.

User Account

All Pages