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Based on the indirect cash flow statements for 2018 and 2019 does Green Grocers have sufficient cash flow from operations to cover its annual loan
Based on the indirect cash flow statements for 2018 and 2019 does Green Grocers have sufficient cash flow from operations to cover its annual loan payment of $6.51 thousand?
| Indirect Cash Flow Statement | 2019 | 2018 | |
| Net Income | $14,694.76 | $6,891.00 | |
| Depreciation Expense | $29,515.00 | $29,511.00 | |
| Less Rise in AR | -$437.40 | -1,113.00 | |
| Less Rise in Inventory | -$8,425.08 | -7,282.00 | |
| Plus Rise in AP | $5,116.41 | 3,234.00 | |
| Plus Rise in AL | $1,324.08 | 1,786.00 | |
| Net Cash Flow Operations | $41,787.77 | 33,027.00 | |
| Cash Used in Investing: | |||
| Change in NPPE | $36.00 | 6,846 | |
| Plus Depreciation Expense | $29,515.00 | $29,511.00 | |
| Net Cash Used in Investing | $29,551.00 | $36,357.00 | |
| Cash from Financing: | |||
| Dividends Paid | -$5,000.00 | 0 | |
| Rise in LT Debt | $37.49 | 5,567 | |
| Rise in Common Stock | 0 | 267 | |
| Cash from Financing: | -$4,962.51 | $5,834.00 | |
| Change in Cash | |||
| CFO less CFI plus CFF | $7,274.26 | $2,504.00 | |
| Check Change Cash | $7,274.26 | 2504 |
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Advanced Finance Theories
Authors: Ser-Huang Poon
1st Edition
9814460370, 978-9814460378
