PART B 1. Identify ONLY two items that are sources and ONLY two items that are uses of cash from the list of accounting items given. Increase in Notes payable Dividends paid Decrease in Accounts Payable Increase in Fixed Assest Increase in Long term debts Increase in Accounts Receivables Increase in Inventory Decrease in accrual /4/ 2. Given the financial data for All Time Low Incorporated, compute the following measures of cash flows for the NEW for the year ended December 31, 2005 2004 Depreciation EBIT 2005 $3,000 30,000 Interest Expenses 3,000 Taxes 8,000 Cash $21,000 24,000 Accounts Receivable 39,000 45,000 Inventory 27,000 30,000 Net fixed assets 22,000 24,000 Accounts payable 25,000 30,000 Notes payable 50,000 40,000 Accruals 1,000 2,000 a. Operating Cash Flow /2/ b. Free Cash Flow /5/ 25
PART B 1. Identify ONLY two items that are sources and ONLY two items that are uses of cash from the list of accounting items given. Increase in Notes payable Dividends paid Decrease in Accounts Payable Increase in Fixed Assest Increase in Long term debts Increase in Accounts Receivables Increase in Inventory Decrease in accrual /4/ 2. Given the financial data for All Time Low Incorporated, compute the following measures of cash flows for the NEW for the year ended December 31, 2005 2004 Depreciation EBIT 2005 $3,000 30,000 Interest Expenses 3,000 Taxes 8,000 Cash $21,000 24,000 Accounts Receivable 39,000 45,000 Inventory 27,000 30,000 Net fixed assets 22,000 24,000 Accounts payable 25,000 30,000 Notes payable 50,000 40,000 Accruals 1,000 2,000 a. Operating Cash Flow /2/ b. Free Cash Flow /5/ 25
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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Transcribed Image Text:PART B
1. Identify ONLY two items that are sources and ONLY two items that are uses of cash from
the list of accounting items given.
Increase in Notes payable
Dividends paid
Decrease in Accounts Payable
Increase in Fixed Assest
Increase in Long term debts
Increase in Accounts Receivables
Increase in Inventory
Decrease in accrual
/4/
2. Given the financial data for All Time Low Incorporated, compute the following measures
of cash flows for the NEW for the year ended December 31, 2005
2004
Depreciation
EBIT
2005
$3,000
30,000
Interest Expenses
3,000
Taxes
8,000
Cash
$21,000
24,000
Accounts Receivable
39,000
45,000
Inventory
27,000
30,000
Net fixed assets
22,000
24,000
Accounts payable
25,000
30,000
Notes payable
50,000
40,000
Accruals
1,000
2,000
a. Operating Cash Flow
/2/
b. Free Cash Flow
/5/
25
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