Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

): Alphabet Inc. reported the following cash flow information for the fiscal year ended December 31, 2023: Net Income: $5,000,000 Depreciation and Amortization Expense: $900,000

  1. ): Alphabet Inc. reported the following cash flow information for the fiscal year ended December 31, 2023:
  2. Net Income: $5,000,000
  3. Depreciation and Amortization Expense: $900,000
  4. Increase in Accounts Receivable: $250,000
  5. Decrease in Inventory: ($120,000)
  6. Increase in Accounts Payable: $180,000
  7. Interest Expense Paid: ($400,000)
  8. Income Tax Paid: ($800,000)
  9. Net Cash Provided by Operating Activities: $6,000,000
  10. Cash Flows from Investing Activities: ($4,000,000)
  11. Cash Flows from Financing Activities: $3,000,000

a. Calculate Alphabet Inc.'s Operating Cash Flow using the indirect method. b. Determine Alphabet Inc.'s Free Cash Flow for the fiscal year. c. Analyze the financing activities section and discuss its impact on Alphabet Inc.'s capital structure. d. Evaluate Alphabet Inc.'s liquidity position based on changes in accounts receivable, inventory, and accounts payable. e. Discuss how Alphabet Inc.'s cash flow from investing activities reflects its investment strategies.

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

Accounting Theory Conceptual Issues in a Political and Economic Environment

Authors: Harry Wolk, James Dodd, John Rozycki

8th edition

1412991692, 978-1412991698

More Books

Students also viewed these Accounting questions