Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15. Presented below is the Statement of Cash Flows for Margarete Originals Clothing Company. MARGARETE ORIGINALS CLOTHING COMPANY Statement of Cash Flows For Year Ended

image text in transcribed
15. Presented below is the Statement of Cash Flows for Margarete Originals Clothing Company. MARGARETE ORIGINALS CLOTHING COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Cash flows from operating activities: Received from sales to customers Interest income received Payment for inventory Payment to employees Net increase from operating activities $ 2,000,000 40,000 (320,000) (240.000) $ 1,480,000 Cash flows from investing activities: Payment for stock of another company Payment for purchase of equipment Net decrease from investing activities (200,000) (800,000) $(1,000,000) Cash flows from financing activities: Received from loans from bank From issuance of common stock From issuance of bonds Payment of dividends Net increase from financing activities $ 200,000 600,000 400,000 (80,000) $ 1.120,000 Net increase in cash $ 1,600,000 Determine the company's free cash flow: A) ($600,000) B) ($520.000) C) $480,000 D) $680,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

8th Edition

1119316022, 978-1119316022

More Books

Students also viewed these Accounting questions