Hampton Industries had $52,000 in cash at year-end 2018 and $17,000 in cash at year-end 2019. The firm invested in property, plant, and equipment totaling $230,000the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$160,000. Roundyour answers to the nearest dollar, if necessary.a. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign.0$0b. If accruals increased by $30,000, receivables and inventories increased by $200,000, and depreciation and amortization totaled $29,000, what was the firm's net income?$о

Let's start by calculating the cash flow from operating activities (CFO).Part a: Calculating Cash…

Answered: Hampton Industries had $52,000 in cash…

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

Section: Chapter Questions

Problem 1PS

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In Year 1, Darw Inc. purchased equipment with an expected useful life of 5 years. The initial cost of the equipment was $85,000. Darw Inc.cost of capital is 12%. At the time it purchased the equipment, Darw Inc. projected the following cash inflows from use of the equipment: Year Projected Cash Inflow 1 $20,000 2 $30,000 3 $35,000 4 $25,000 5 $15,000 At the end of Year 5, the equipment had reached the end of its useful life. Darw Inc.determined that it had actually generated the following cash flows: Year Actual Cash Inflow $10,000 $20,000 $30,000 $30,000 $30,000 1) What was the net present value that Darw Inc. calculated for the equipment when the company purchased the asset?
Tipton Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return O 5 years O 15 years O2 years O 7.143 years $ 30,000 $ 6,000 $0 Chapter 8 15 10 The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment is: years %
Vinny's Overhead Construction had free cash flow during 2021 of $25.4 million. The change in gross fixed assets on Vinny's balance sheet during 2021 was $5.0 million and the change in net operating working capital was $6.0 million. Calculate the missing amounts on Vinny's income statement below. (Enter your answers in millions of dollars rounded to 2 decimal places.) Net sales VINNY'S OVERHEAD CONSTRUCTION, CORP. Income Statement for Year Ending December 31, 2021 (in millions of dollars) Less: Cost of goods sold 118.10 Gross profits $ 61.00 Less: Other operating expenses 14.40 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 46.60 Less: Depreciation 12.60 Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income $ 15.54
ASSETS Non-current assets Property, plant and equipment Land 3. 130,000 Equipment at cost Depreciation 10,000 9.000 139,000 (1,000) Current assets Inventories 6,000 3,000 200 Receivables Prepaid expenses: Water Rates 200 Cash 29.400 168.400 20.000 Total assets Equity and Liabilities Equity Original Capital (Owner's Capital) Retained profit 120,000 25.400 145,400 Liabilities Long-term liabilities Mortgage 10,200 Short-term liabilities Trade payables Accrued expenses: Rent Tax payable Total Equity and Liabilities 2,500 500 9.800 12.800 168.400
Muffin's Masonry, Inc.'s balance sheet lists net fixed assets as $33 million. The fixed assets could currently be sold for $57 million. Muffin's current balance sheet shows current liabilities of $15.0 million and net working capital of $14.0 million. If all the current accounts were liquidated today, the company would receive $8.20 million cash after paying the $15.0 million in current liabilities.What is the book value of Muffin's Masonry's assets today and the market value of these assets?
Help please The following details relate to a particular asset Future Cash flows (per annum) 90,000 Expected period of cash flows 3 years Discount Rate 10% Open market price of asset 210,000 Cost of asset 630,000 Accumulated depreciation 450,000 Calculate both : a)determine the recoverable amount for this asset b)Determine whether the asset is impaired
In Year 1, Darw Inc. purchased equipment with an expected useful life of 5 years. The initial cost of the equipment was $85,000. Darw Inc.cost of capital is 12%. At the time it purchased the equipment, Darw Inc. projected the following cash inflows from use of the equipment: Year Projected Cash Inflow 1 $20,000 2 $30,000 3 $35,000 4 $25,000 5 $15,000 At the end of Year 5, the equipment had reached the end of its useful life. Darw Inc.determined that it had actually generated the following cash flows: Year Actual Cash Inflow $10,000 $20,000 $30,000 $30,000 $30,000 2. Calculate the net present value that the equipment achieved, based on the actual cash inflows.
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A machine with a cost of $138,000 and accumulated depreciation of $93,000 is sold for $54,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: Multiple Choice $54,000. $9,000. $45,000. Zero. This is a financing activity. Zero. This is an operating activity.
Finance is Fun, Inc recently reported net income of $4.2 million, depreciation of $750,000, and amortization of $100,000. What was its net cash flow?
The 2021 Income statement for Egyptian Nolse Blasters shows that depreciation expense is $80 million, NOPAT is $239 million. At the end of the year, the balance of gross fixed assets was $650 million. The change in net operating working capital during the year was $70 million. Egyptian's free cash flow for the year was $180 million. Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
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