Question

You are the CCO of a lulu company. the company recordes were damaged by fires. your...

  • You are the CCO of a lulu company. the company recordes were damaged by fires. your job is to remake the cash flow statement for the year that has just ended.
  • The company had 3400 dolars in the bank at the end of the prior year (exmple;beginning cash), and its net working capital accounts, except cash, remained constant during the year.
  • The firm earned $9,100 in net income during the year and but only paid $4,900 in dividends to its common shareholders.
  • During the year, Wonderland Enterprises had sold $3,700 worth of machinery and $7,500 worth of land, which are no longer needed in the firm’s operations.
  • You have just been spoken to the firm’s accountants and learnt that the annual depreciation expense for the year is $1,200.
  • Finally, you have discovered that the firm has obtained a bank loan from the ADB bank for the amount of $2,400.
  • To answer the questions that follow, place your responses in the templates provided below.
  1. Calculate the company’s cash flow from operating activities for the year.   
  1. find the firm's cash flow from investing activities for the year.
  1. what is the companys cash flow from financing activities for the year.   
  1. Estimat the company's cash balance at the end of the year.

Homework Answers

Answer #2

Solution:

a)Calculation of company’s cash flow from operating activities for the year:

Statement showing Cash from operating activities:

Amount
Net Income $9,100
Add:Depreciation $1200
Add:Change in working capital $0
Cash flow from operating activities $10,300

b)Cash flow from investing activities for the year:

=Sale of land+sale of machinery

=$7,500+$3,700

=$11,200

c)Cash flow from financing activities for the year:

=Bank loan received-Dividend paid

=$2,400-$4,900

=-$2500

d)Calculation of cash balance at year end:

Amount
Opening cash balance(bank balance) $3,400
Add:cash flow from operating activities $10,300
Add:Cash flow from investing activities $11,200
Less:Cash flow from Financing activities $2,500
Cash balance at the year end $22,400
answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are the CFO of a company called Wonderland Enterprises. the firm’s headquarters (where all the...
You are the CFO of a company called Wonderland Enterprises. the firm’s headquarters (where all the records are kept) have recently been destroyed by fire. So, your task is to recreate the cash flow statement for the year that has just ended. •   The firm originally had $10,200 in the bank at the end of the prior year (i.e., beginning cash), and its net working capital accounts, except cash, remained constant during the year. •   The company earned $27,500 in...
You are the CFO of a company called hamburger. Unfortunately, the firm’s headquarters (where all the...
You are the CFO of a company called hamburger. Unfortunately, the firm’s headquarters (where all the records are kept) have recently been destroyed by fire. So, your task is to recreate the cash flow statement for the year that has just ended. •   The firm originally had $4,800 in the bank at the end of the prior year (i.e., beginning cash), and its net working capital accounts, except cash, remained constant during the year. •   The company earned $18,300 in...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during...
During the last year, Len Corp. generated $1,170.00 million in cash flow from operating activities and...
During the last year, Len Corp. generated $1,170.00 million in cash flow from operating activities and had negative cash flow generated from investing activities (-640.00 million). At the end of the first year, Len Corp. had $200 million in cash on its balance sheet, and the firm had $280 million in cash at the end of the second year. What was the firm’s cash flow (CF) due to financing activities in the second year? $337.50 million $562.50 million $-225.00 million...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during...
11. During 2008, Bakery Company paid out $50,000 of common dividends. It ended the year with...
11. During 2008, Bakery Company paid out $50,000 of common dividends. It ended the year with $200,000 of retained earnings versus the prior year’s retained earnings of $150,000. How much net income did the firm earn during the year? * $ 250,000 $ 500,000 $ 400,000 $ 100,000 None of the above 12. For the year ended December 31, 2008, a corporation had cash flow from operating activities of $10,000, cash flow from investing activities of $10,000, and cash flow...
Cash flows “Cash Is King” for all businesses. You can determine a company’s cash situation by...
Cash flows “Cash Is King” for all businesses. You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. A firm has $100 million in revenues. Does that mean it has generated a cash flow of $100 million?...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where...
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT