Outdoor Lighting Supply expects the following for 2018: Net cash provided by operating activities of $275,000 Net cash provided by financing activities of $70,000 Net cash provided by investing activities of $82,000 Cash dividends paid to stockholders of $25,000 Outdoor expects to spend $158,000 to modernize its showroom. How much free cash flow does Outdoor expect for 2018? A. $117,000 B. $262,000 c. $92,000 D. $98,000

Outdoor Lighting Supply expects the following for 2018: Net cash provided by operating activities of $275,000 Net cash provided by financing activities of $70,000 Net cash provided by investing activities of $82,000 Cash dividends paid to stockholders of $25,000 Outdoor expects to spend $158,000 to modernize its showroom. How much free cash flow does Outdoor expect for 2018? A. $117,000 B. $262,000 c. $92,000 D. $98,000

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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Additional Funds Needed The Booth Company's sales are forecasted to double from $1,000 in 2019 to $2,000 in 2020. Here is the December 31, 2019, balance sheet: Cash Accounts receivable Inventories Net fixed assets $100 200 200 500 Accounts payable Notes payable Accruals Long-term debt Common stock Retained earnings Total liabilities and equity $ 50 150 50 400 100 250 $1,000 Total assets $1,000 Booth's fixed assets were used to only 50% of capacity during 2019, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 5% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ Check My Work
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Cash flow diagram.
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