a.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
b.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
c.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
d.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
e.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
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Chapter 26 Solutions
UPENN: LOOSE LEAF CORP.FIN W/CONNECT
- Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow a. Calculate the firm's net operating profit after taxes (NOPAT) for this year. b. Calculate the firm's operating cash flow (OCF) for the year. c. Calculate the firm's free cash flow (FCF) for the year. d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). Data table - (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. The net operating profit after taxes is (Round to the nearest dollar.) Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1,530 $960 Marketable securities 1,840 1,200 Accounts receivable 1,990 1,810 Inventories 2,930 2,770 Total current assets $8,290 $6,740 Gross fixed assets $29,550 $28,130 Less: Accumulated depreciation 15,214 13,100 Net fixed assets $14,336 $15,030 Total assets $22,626 $21,770 Liabilities and Stockholders'…arrow_forwardAssume Cramer uses the direct method to prepare the statement of cash flows. Incometax payable was $6,500 at the end of the year, and $3,100 at the beginning of the year. Incometax expense for the year totaled $58,900. What amount of cash did the company pay for incometaxes during the year?a. $55,500b. $62,000c. $58,900d. $62,300arrow_forwardHow do you solve this on excel with formulas ?arrow_forward
- min.4arrow_forwardWhat is the cash flow?arrow_forwardThe statement of cash flows of Bosley Corporation shows the amount of cash received from customers as $720,000. If net sales in Bosley Corporation's income statement are reported at $670, 000 then: Select one: a. Bosley's accounts receivable are $50,000 t the end of the year. b. Bosley's accounts receivable decreased $50,000. c. Bosley's accounts receivable increased $50,000. d. Bosley's cash account decreased $50,000.arrow_forward
- Duning the year, Next Tec Corp. had the following cash flows receipt trom customers, $21,000, receipt from the bank for long term borrowing. $6,200, payment to supplers, $5,200, payment of dividends, $1700, payment to workers, $3.000, and payment for machenery $9,000. What amount would be reported for net financing cash flows in the statement of cash fows? Mutiple Choice S4500 $6 200 (19,000 SA000 20 s0 ype here to search Ps 40% S/1/20 K N Alt Ctri Home oOOoarrow_forwardThe following data relates to Ronaldo Inc. for last year: Net income. Net increase in all current assets except cash. Net increase in current liabilities... Dividends paid on common stock. Depreciation expense .. Gain on sale of investments . $117,000 $31,000 $45,000 $20,000 $8,000 $3,000 What is Ronaldo's net cash provided by operating activities for last year on the statement of cash flows?arrow_forwardNeed all parts.....ATTEMPT if you will provide all Answer s...arrow_forward
- Analysis reveals that a company had a net increase in cash of $21,540 for the current year. Net cash provided by operating activities was $19,400; net cash used in investing activities was $10,700 and net cash provided by financing activities was $12,840. If the year-end cash balance is $26,100, the beginning cash balance was: $47,640. $16,980. $4,560. $42,080. $43,080.arrow_forwardMechTech Incorporated started the year with $120,400 cash and reported net cash provided by operating activities of $242,500, cash paid for dividends of $50,200, cash received from stock issuance of $47,000, cash paid for equipment purchases of $158,500, cash paid for intangible assets of $125,500, and cash paid on bank loan of $43,500. Required: Calculate the following: 1. Net cash provided by (used in) investing activities. 2. Net cash provided by (used in) financing activities. 3. Ending cash. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate net cash provided by (used in) investing activities. (Amounts to be deducted should be indicated with a minus sign.) Investing Activities Cash paid for equipment purchases Net cash provided by (used in) investing activities + $ Amount (158,500) (158,500)arrow_forwardAt the end of the previous year, a company’s balance sheet reports cash of $30,000. For the current year, the company’s statement of cash flows reports operating cash inflows of $90,000; investing outflows of $110,000; and financing inflows of $40,000. What amount of cash will be reported in the current year’s balance sheet? a. $90,000.b. $20,000.c. $50,000.d. $120,000.arrow_forward
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