2. Calculate the cash balance given the following information:Decrease in AR31000Increase in Inventory64000Increase in AP45000Decrease in Taxes Payable8000Repaid Long Term Debt88000Issued Common Shares171000Issued Dividends25000

Step 1:Computation of Cash Inflows Total Cash inflows = Decrease in AR + Increase in accounts…

Answered: 2. Calculate the cash balance given the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6
Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $(3,500,000.00) ($3,500,000.00) 1 $900,000.00 0.90909 $818, 181.00 $818, 181.82 2 $ 900,000.00 0.82645 $743,805.00 $743, 801.65 3 $900,000.00 0.75131 $676, 179.00 $676, 183.32 4 $ 900,000.00 0.68301 $614,709.00 $614,712.11 5 $900,000.00 0.62092 $558, 828.00 $558,829.19 Net Present Value $(88,298.00) $(88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. Hint: You should start with 5% increase for Year 1 net cash flow.
Question 4: XYZ Co. had the following information in 2020: Sales 150000 COGS 80000 Operating expenses (excluding depreciation) Interest expense 32000 8000 Таxes 3000 Increase in Accounts receivable 7000 Decrease in inventory Increase in Accounts payable Decrease in other payables Increase in interest payable Decrease in tax payable 4000 5000 3500 2000 1000 Prepare operating cash flows using direct method.
What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals.Year 0 cash flow = -116,000Year 1 cash flow = 28,000Year 2 cash flow = 43,000Year 3 cash flow = 38,000Year 4 cash flow = 41,000Year 5 cash flow = 40,000Year 6 cash flow = 37,000
Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $ (3,500,000.00) ($3,500,000.00) 1 $ 900,000.00 0.90909 $ 818,181.00 $818,181.82 2 $ 900,000.00 0.82645 $ 743,805.00 $743,801.65 3 $ 900,000.00 0.75131 $ 676,179.00 $676,183.32 4 $ 900,000.00 0.68301 $ 614,709.00 $614,712.11 5 $ 900,000.00 0.62092 $ 558,828.00 $558,829.19 Net Present Value $ (88,298.00) $ (88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. start with 5% increase for Year 1 net cash flow. Year Net Cash Flow 0 $…
Prepare cash flow statement based on information given Decrease in accounts receivable $20 Increase in inventory 10 Operating income 200 Interest expense 20 Decrease in accounts payable 20 Dividend 20 Decrease in common stock 30 Increase in net fixed asset 20 Depreciation 15 Income tax 20 Beginning cash 100
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2. Calculate the cash balance given the following information: Decrease in AR 31000 Increase in Inventory 64000 Increase in AP 45000 Decrease in Taxes Payable 8000 Repaid Long Term Debt 88000 Issued Common Shares 171000 Issued Dividends 25000