Mississippi Products Co. had the following positive cash flows during the current year: received cash from customers of $750,000; received bank loans of $35,000; and received cash from the sale of common stock of $145,000. During the same year, cash was paid out to purchase inventory for $345,000, to employees for $230,000, and for the purchase of plant assets of $217,000. Calculate the amount of cash provided by or used for operating activities by the direct method. Net cash provided by operating activities

Mississippi Products Co. had the following positive cash flows during the current year: received cash from customers of $750,000; received bank loans of $35,000; and received cash from the sale of common stock of $145,000. During the same year, cash was paid out to purchase inventory for $345,000, to employees for $230,000, and for the purchase of plant assets of $217,000. Calculate the amount of cash provided by or used for operating activities by the direct method. Net cash provided by 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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Kela Corporation reports net income of $570,000 that includes depreciation expense of $78,000. Also, cash of $59,000 was borrowed on a 4-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Choice $629,000. $648,000. $492,000. $707,000.
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Cash Flow RatiosSpencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $90,000 Capital expenditures $59,500* Cash flow from investing activities (68,000) Average current assets 136,000 Cash flow from financing activities (8,500) Average current liabilities 102,000 Net income 42,500 Total assets 255,000 * This amount is a cash outflowa. Compute Spencer's free cash flow.b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio.c. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio. Round ratios to two decimal points. a. Free cash flow Answer b. Operating-cash-flow-to-current-liabilities ratio Answer c. Operating-cash-flow-to-current-expenditures ratio Answer
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Laser World's income statement reported total revenues of $920,000 and total expenses (including $44,500 depreciation) of $775,000. The balance sheet reported the following: Accounts Receivable-beginning balance, $57,000 and ending balance, $59,000; Accounts Payable-beginning balance, $23,000 and ending balance, $29,000. Therefore, based only on this information, the net cash flows from operating activities were: eBook Multiple Choice $96,800. $149,000. $185,650 O $193,500. Mc Graw Hill P Type here to search Ps Ps 98% A 4x A dx 6 *** Prtse Isert Delete F10 FII F1R & * 3 5 Num Lock 4 6 8. 9. Backspace T U G J K Enter V B > Shi Alt * Pgup Alt Ctrl Home PgDn : - O O O O
n its fiscal 2010 balance sheet, Big Lots, Inc., reported cash and cash equivalents at the start of the year of $283,733 thousand. By the end of the year, the cash and cash equivalents had decreased to $177,539 thousand. The company's statement of cash flows reported cash from operating activities of $315,257 thousand, cash from financing activities of ($306,899) thousand. What amount did the company report for cash from investing activities? Select one: a. $8,358 thousand cash inflow b. $106,194 thousand cash outflow c. $114,552 thousand cash outflow d. $114,552 thousand cash inflow e. None of the above.
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