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5. What conclusions can you draw about the cashflows for the company in 2020?

5. What conclusions can you draw about the cashflows for the company in 2020?

FINANCIAL ACCOUNTING
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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* Required Consider the following selected financial information for Green Woods Company. Green Woods Company Balance Sheet For the Year Ended December 31, 2019 & 2020 Green Woods Company Income Statement 2020 2019 For the Year Ended December 31, 2020 ASsets $480 Cash Adcounts Receivable S230 S510 ||SS90 $960 Revenues $9 00 S980 $3 140 S2.150 $1520) |(S870) $3,340 83,310 S650 nsentories Plant & Eqtipment Lesse Accumulated Denteciation: Less: Depreciation expense Less: Other operating expenses. Total Assets Labilities &OF Less Interest Fxpense 440 S810 $550 $2 80 Income before income taxes S120 S9in $1 100 S150 S$40- S3 10 $3,370 Income tax expense income Tax Paynble $540 Net income Tatel Liubilines und OE. 1. Using the indirect method of cash flow statement, what is the net cash provided by operating activities for the vear 2020?
Transcribed Image Text:* Required Consider the following selected financial information for Green Woods Company. Green Woods Company Balance Sheet For the Year Ended December 31, 2019 & 2020 Green Woods Company Income Statement 2020 2019 For the Year Ended December 31, 2020 ASsets $480 Cash Adcounts Receivable S230 S510 ||SS90 $960 Revenues $9 00 S980 $3 140 S2.150 $1520) |(S870) $3,340 83,310 S650 nsentories Plant & Eqtipment Lesse Accumulated Denteciation: Less: Depreciation expense Less: Other operating expenses. Total Assets Labilities &OF Less Interest Fxpense 440 S810 $550 $2 80 Income before income taxes S120 S9in $1 100 S150 S$40- S3 10 $3,370 Income tax expense income Tax Paynble $540 Net income Tatel Liubilines und OE. 1. Using the indirect method of cash flow statement, what is the net cash provided by operating activities for the vear 2020?
Decrease in cash by $230 E) None of the above. 5. What conclusions can you draw about the cash flows for the company in 2020? * A) The comapny is unable to generate enough cash tom operating activities in order to cover debts and pay divided B) The company has generated an increasing dellar amount of cash from operations (CFO) from 2019 to 2020 while being able to use most of cash to pay long term debt and dividends. C) The trend is upward for botth net income ag CF@ b the ending cash balance has decreased. The firm appears to be doing well while expanding its assets. O D) Both (B) & (C) O E) None of the above
Transcribed Image Text:Decrease in cash by $230 E) None of the above. 5. What conclusions can you draw about the cash flows for the company in 2020? * A) The comapny is unable to generate enough cash tom operating activities in order to cover debts and pay divided B) The company has generated an increasing dellar amount of cash from operations (CFO) from 2019 to 2020 while being able to use most of cash to pay long term debt and dividends. C) The trend is upward for botth net income ag CF@ b the ending cash balance has decreased. The firm appears to be doing well while expanding its assets. O D) Both (B) & (C) O E) None of the above
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