1. Leroy, Inc.'s balance sheets for 2022 and 2023 as well as income statement are listed below. Leroy, Inc. 2022 and 2023 Balance Sheets (in thousand) 2022 2023 2022 2023 Cash Accounts Rec. $ 434 $ 567 Accounts Payable $3,808 $3,598 3,696 4,277 Note Payable 140 Inventory 4,585 5,390 Total $3,948 $3,598 Total $ 8,715 $10,234 Long-term Debt $ 11,025 $11,340 Net Fixed Assets $15,344 $14,938 Common Stock 7,000 7,350 Retained Earning S 2,086 $ 2,884 Total Assets $24,059 $25,172 Tot. Liab. & Equity $24,059 $25,172 Leroy, Inc. Net Sales 2023 Income Statement Less: Cost of Goods Sold Less: Depreciation EBIT Less: Interest Paid Taxable Income Less: Taxes Net Income $13,454 8,834 1,918 2,702 882 $ 1,820 637 $1,183 (a) From accounting's perspective, what is the cash flow from operating activities in 2023? (b) From accounting's perspective, what is the cash flow from investment activities in 2023? (c) What is the dividend amount paid in 2023? From accounting's perspective, what is the cash flow from financing activities in 2023? (d) From your answers to (a) to (c) figure out the change in cash flow in 2021, and show it is consistent with what is reported in the balance sheet. (e) From finance perspective, what is the change in the net working capital from 2022 to 2023? (f) From finance perspective, what is the operating cash flow for 2023? (g) From finance perspective, what is the cash flow from firm's asset for 2023? (h) Compute Cash Flows to Shareholders, and Cash Flows to Bondholders.
1. Leroy, Inc.'s balance sheets for 2022 and 2023 as well as income statement are listed below. Leroy, Inc. 2022 and 2023 Balance Sheets (in thousand) 2022 2023 2022 2023 Cash Accounts Rec. $ 434 $ 567 Accounts Payable $3,808 $3,598 3,696 4,277 Note Payable 140 Inventory 4,585 5,390 Total $3,948 $3,598 Total $ 8,715 $10,234 Long-term Debt $ 11,025 $11,340 Net Fixed Assets $15,344 $14,938 Common Stock 7,000 7,350 Retained Earning S 2,086 $ 2,884 Total Assets $24,059 $25,172 Tot. Liab. & Equity $24,059 $25,172 Leroy, Inc. Net Sales 2023 Income Statement Less: Cost of Goods Sold Less: Depreciation EBIT Less: Interest Paid Taxable Income Less: Taxes Net Income $13,454 8,834 1,918 2,702 882 $ 1,820 637 $1,183 (a) From accounting's perspective, what is the cash flow from operating activities in 2023? (b) From accounting's perspective, what is the cash flow from investment activities in 2023? (c) What is the dividend amount paid in 2023? From accounting's perspective, what is the cash flow from financing activities in 2023? (d) From your answers to (a) to (c) figure out the change in cash flow in 2021, and show it is consistent with what is reported in the balance sheet. (e) From finance perspective, what is the change in the net working capital from 2022 to 2023? (f) From finance perspective, what is the operating cash flow for 2023? (g) From finance perspective, what is the cash flow from firm's asset for 2023? (h) Compute Cash Flows to Shareholders, and Cash Flows to Bondholders.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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