Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $80,000,000, cost of goods sold of $35,000,000, sales and administrative costs of $6,400,000, depreciation expense of $7,600,000, and a tax rate of 30%.   Manning Company reported the following information for 2019: Cash provided by operating activities $425,000 Cash used by investing activities $200,000 Average debt maturing over the next 5 years $80,000 Capital expenditures $275,000 Cash dividends $60,000 Required: Compute free cash flow and the cash flow adequacy ratio.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 10RE: In the current year, Harrisburg Corporation collected 100,000 from its customers and paid out 30,000...
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  1. Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $80,000,000, cost of goods sold of $35,000,000, sales and administrative costs of $6,400,000, depreciation expense of $7,600,000, and a tax rate of 30%.

 

  1. Manning Company reported the following information for 2019:

Cash provided by operating activities

$425,000

Cash used by investing activities

$200,000

Average debt maturing over the next 5 years

$80,000

Capital expenditures

$275,000

Cash dividends

$60,000

Required:

Compute free cash flow and the cash flow adequacy ratio.

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