Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 3.A, Problem 4SP
Summary Introduction
To prepare: Statement of cash flows for Company K.
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The income statement and additional data of Newbury Travel Products, Inc., follow:
(Click the icon to view the income statement.)
(Click the icon to view the additional data.)
Requirements
1. Prepare Newbury's statement of cash flows for the year ended December 31, 2021, using the indirect method.
2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and
give the rationale for your evaluation.
Data table
Newbury Travel Products, Inc.
Income Statement
Year Ended December 31, 2021
Revenues:
Service revenue
$
238,000
Dividend revenue
8,600
$ 246,600
Expenses:
Cost of goods sold
97,000
Salary expense
61,000
Depreciation expense
21,000
Advertising expense
3,000
Interest expense
2,100
12,000
196,100
Income tax expense
ge
$
50,500
Net income
- X
This is 1 question that has 2 sub-parts. Please answer both questions. Please provide a detailed working out.
NB!!! Round off all answers to 2 decimal places.
Please answer correct ,, and provide answer in text form
Chapter 3 Solutions
Foundations Of Finance
Ch. 3.A - (Computing free cash flows) Given the following...Ch. 3.A - Prob. 2SPCh. 3.A - Prob. 3SPCh. 3.A - Prob. 4SPCh. 3 - A companys financial statements consist of the...Ch. 3 - How do gross profits, operating profits, and net...Ch. 3 - How do dividends and interest expense differ?Ch. 3 - Why is it that the preferred stockholders equity...Ch. 3 - Prob. 5RQCh. 3 - Prob. 6RQ
Ch. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1SPCh. 3 - Prob. 2SPCh. 3 - (Preparing an income statement) Prepare an income...Ch. 3 - (Preparing a balance sheet) Prepare a balance...Ch. 3 - Prob. 5SPCh. 3 - Prob. 6SPCh. 3 - Prob. 7SPCh. 3 - (Working with income statement and balance sheet)...Ch. 3 - (Working with a statement of cash flows) Given the...Ch. 3 - Prob. 10SPCh. 3 - Prob. 11SPCh. 3 - Prob. 12SPCh. 3 - Prob. 13SPCh. 3 - Prob. 14SPCh. 3 - Prob. 15SPCh. 3 - Prob. 16SPCh. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MC
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