a. What is the cash flow from operation?
b. What is the cash flow from investment activities?
C. What is the cash flow from financing activities?
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Sales
|
$1500
|
|
Increase in inventory
|
100
|
|
Depreciation
|
150
|
|
Increase in accounts receivable
|
50
|
|
Decrease in accounts payable
|
70
|
|
After tax profit margin
|
25%
|
|
Gain on sale of machinery
|
$30
|
Based on the above information, what is the Cash flow from operation for Jones Inc.?
Question 3:
Adelaide Brighton Company recorded the following in Year 2015:
Proceeds from issuance of long-term debt $300,000
Purchase of equipment $200,000
Payment for inventory $50,000
Loss on sale of equipment $70,000
Stock repurchase $9,000
Proceeds from sale of equipment $220,000
Equity in earnings of affiliate $10,000
On the Year 2015 statement of cash flows, what the company would report as net cash flow from investing activities?
Question 4:
Green Flag., a retailer of floral products, reported cost of goods sold for the year of $85 million. Total assets increased by $35 million, but inventory declined by $7 million. Total liabilities increased by $40 million, and accounts payable increased by $8 million. What is the amount of cash paid by the company to its suppliers?
Question 5:
Following are the information gathered from a company’s 2010 financial state ments (in $ millions):
|
Year ended 31 December
|
2009
|
2010
|
|
Net sales
|
265.4
|
277.4
|
|
Cost of goods sold
|
168.3
|
187.9
|
|
Accounts receivable
|
77.8
|
68.8
|
|
Inventory
|
37.4
|
47.8
|
|
Accounts payable
|
28.3
|
32.9
|
|
Property and equipment
|
185.5
|
195.6
|
Based only on the information above, what would the company’s 2010 statement of cash flows in the direct format include amounts (in $ millions) for cash received from customers and cash paid to suppliers?
Question 6:
Blue Bayou, an advertising company, reported revenues of $80 million, total expenses of $35 million, cash and marketable securities $2million and net income of $15 million in the most recent year. If accounts receivable decreased by $22 million and accounts payable increase by 8 million, how much cash did the company receive from customers?
Question 7:
Blue Beverages Plc., a manufacturer of tropical drinks, reported cost of goods sold for the year of $120 million. Total assets increased by $55 million, accounts receivable increase by $120 million but inventory declined by $25 million. Total liabilities increased by $45 million, but accounts payable decreased by $5 million. How much cash did the company pay to its suppliers during the year?
Question 8: Discussion on chapter-end MCQs