Question
A company has the following data relating to its last 2 years of operations: Selected balance sheet data 2021 2020 Cash and cash equivalents 2,300
A company has the following data relating to its last 2 years of operations:
Selected balance sheet data
2021 2020
Cash and cash equivalents 2,300 2,700
Accounts receivable 7,000 8,500
Inventory 13,000 12,100
Prepaid expenses 500 700
Accounts payable 5,000 6,000
Accrued expenses 1,100 900
Deferred taxes 2,100 1,700
Investments 2,000 8,000
PPE 16,000 15,000
Accumulated depreciation, PPE 11,000 9,000
Intangible assets 5,000 5,700
Selected income statement data
Earnings before interest, taxes,
depreciation, and amortization
(EBITDA) 17,700
Depreciation 2,000
Amortization of intangibles 700
Operating profit 15,000
Gain on sale of investments 5,000
Interest expense 1,200
Income before taxes 18,800
Taxes 3,700
Net income 15,100
Additional Information:
Question: If you are asked to prepare a financial cash flow statement:
a.. What would be your investment in net operating working capital (Investment in NOWC)? Show calculations.
b. What would be your investment in operating long-term assets (Investment in OLTA) or capital expenditure? Show calculations.
c. If you are asked to prepare an accounting cash flow statement: What would be your operating cash flow? Show calculations.
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