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

See similar textbooks

Similar questions

39
help
man.1
Door to Door Moving Company is considering purchasing new equipment that costs $734,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 2 3 4 5 $204,000 204,000 262,000 262,000 158,000 Present value of $1: 6% 1 2 3 4 5 0.943 0.890 0.840 0.792 0.747 7% A. $36,312 B. $886,000 OC. $871,928 OD. $786,000 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 The company's annual required rate of return is 8%. Using the factors in the table, calculate the present value of the cash inflows. (Round all calculations to the nearest whole dollar.)
An apartment property that will be held for 10 years has the following forecasted cash flows before taxes: 1 2 3 4 $ 5 2,760 2,720 2,686 2,659 2,636 $13,387 $23,199 $88,400 EOP $90,500 6 7 8 9 10 2,581 It is expected that the end of year 10 sales proceeds before taxes will be $39,697. How much initial investment can an equity investor pay for the equity portion if the investor requires a 15-percent, before-tax return? $ 2,619 2,604 2,594 2,587
Determine cash flows Kauai Tools Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 9,300 units at $30 each. The new manufacturing equipment will cost $110,800 and is expected to have a 10-year life and a $8,500 residual value. Selling expenses related to the new product are expected to be 4% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor Direct materials Fixed factory overhead-depreciation Variable factory overhead Total Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar. Kauai Tools Inc. Net Cash Flows Line Item Description Initial investment Operating cash flows: $5.10 16.70 1.10 2.60 $25.50 Year 1 Years…
4 years ago (in 2019) you received a cash flow of $800 when the interest rate was 6%. You will receive an additional $240 next year. From 2019-2021 the interest rate was 6%, but in 2022 was increased to 8% where you expect it to stay. What are these cash flows worth today? $1.345.12 $1,141.28 $1.292.74 $1,270.68
construct a cash flow diagram to find the return on investment of P60,000 made today and accumulated to an amount of P95,000 in 5 years
f
Please revise question 46 to get an answer in this options An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants to determine the firm’s cash conversion cycle. Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. Calculate the firm’s inventory conversion cycle. 18 days 70 days 75 days 80 days Based on information from Question 46~48, Calculate the firm’s cash conversion cycle (CCC). 122 days 129 days 147 days 128 days