Operating-Cash-Flow-to-Current-Liabilities RatioThe following information is from the financial statements of Evans & Sons.Cash flow from operating activities $1,600,000Capital expenditures850,000Current liabilities, beginning of year300,000Current liabilities, end of year380,000Calculate the operating-cash-flow-to-current-liabilities ratio for Evans & Sons.Round answer to two decimal places.0

Operating cash flow Ratio:The operating cash flow ratio is the ratio used to indicates a company's…

Answered: Cash flow from operating activities…

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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Subject: acounting
Income from Net Cash Year Operations Flow $100,000 $180,000 2 40,000 120,000 40,000 100,000 10,000 90,000 10,000 120,000 The net present value for this investment is 4, 5.
Internal Rate of Return Method The internal rate of return method is used by King Bros. Construction Co. in analyzing a capital expenditure proposal that involves an investment of $89,424 and annual net cash flows of $18,000 for each of the eight years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.352 2.991 6. 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9. 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places. b. Using the factor determined in part (a) and the present value of an annuity of $1 table above, determine the internal rate of return for the…
Internal Rate of Return Method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $80,028 and annual net cash flows of $19,000 for each of the five years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places.fill in the blank 1 b. Using the factor determined in part (a) and the present value of an annuity of $1 table above,…
Present value index Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines Cedar Rapids $277,680 (267,000) $10,680 Total present value of net cash flow Amount to be invested Net present value a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places. Total present value of net cash flow Amount to be invested Present value index $302,100 (318,000) $(15,900) I Des Moines b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.) 1. Cedar Rapids because the net present value index is
Brief Exercise 11-14 (Algo) Calculate the cash return on assets (LO11-6) The balance sheet of Cranium Gaming reports total assets of $480,000 and $780,000 at the beginning and end of the year, respectively. Sales revenues are $1.90 million, net income is $73,000, and operating cash flows are $59,000. Calculate the cash return on assets, cash flow to sales, and asset turnover for Cranium Gaming. (Enter your answers in dollars, not millions (i.e., $10.1 million should be entered as 10,100,000).) Cash Return on Assets Numerator/Denominator Cash Flow to Sales Numerator/Denominator Numerator/Denominator Amounts Asset Turnover Amounts Amounts times
I. Operating ActivitiesNet income $ 50,000II. Long-Term Investing ActivitiesAdditions to property, plant, and equipment $ (250,000)III. Financing ActivitiesNet cash provided by financing activities $ 170,000IV. SummaryNet decrease in cash (30,000)Cash and equivalents at beginning of the year 55,000Cash and equivalents at the end of the year $ 25,000If accruals increased by $25,000, receivables and inventories increased by $100,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?
If discretionary expenses are $500, cash flow before discretionary expenses are $2,000, and discretionary capital expenditures are $500, what is the discretionary payout percentage? A. 50% B. 25% C. 20% D. 250%
Free Cash Flow The following information is from the financial statements of Evans & Sons. Cash flow from operating activities $1,600,000 Capital expenditures 850,000 Current liabilities, beginning of year 300,000 Current liabilities, end of year 380,000 Calculate the free cash flow for Evans & Sons. $ 0
Capital Investment Analysis: Geddes Company
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Calculating Actual Interest and Weighted Average Interest Rate Weighted average accumulated expenditures are $400,000 on a project for which work steadily progressed during the current year. The following debt was outstanding during the current year.. Construction loan $100,000 at 10% Note payable $500,000 at 8% Mortgage payable $150,000 at 12% a. Compute the total actual interest expense for the current year. $ b. Compute the weighted average interest rate on the general debt. Calculation of weighted average interest rate Numerator + Denominator = Rate $ General Debt $ %

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Cash flow from operating activities $1,600,000 Capital expenditures 850,000 Current liabilities, beginning of year 300,000 Current liabilities, end of year 380,000