Question
Cash Flows from Operating Activities Net Income $ 539,000 Adjustments to reconcile net income to net cash from operating activities: Depreciation expense 63,400 Increase in
Cash Flows from Operating Activities | ||||
Net Income | $ 539,000 | |||
Adjustments to reconcile net income to net cash from operating activities: | ||||
Depreciation expense | 63,400 | |||
Increase in net accounts receivable | (376,000) | |||
Increase in inventory | (396,000) | |||
Increase in accounts payable | 102,000 | |||
Decrease in accrued liabilities | (79,000) | |||
Increase in income taxes payable | 24,000 | |||
Gain on sale of land | (53,000) | |||
Loss on sale of investments | 6,000 | |||
Net cash provided(used) by operating activities | $(169,600) | |||
Cash Flows from Investing Activities | ||||
Purchase of machinery | (102,000) | |||
Proceeds from sale of investments | 91,000 | |||
Proceeds from sale of land | 104,000 | |||
Net cash provided(used) by investing activities | 93,000 | |||
Cash Flows from Financing Activities | ||||
Issuance of Preferred Stock | 80,000 | |||
Issuance of Bonds Payable | 175,000 | |||
Payment of cash dividends | (114,000) | |||
Purchase of treasury stock | (80,000) | |||
Net cash provided(used) by financing activities | 61,000 | |||
Net change in cash | (15,600) | |||
Cash, January 1, 2015 | 68,000 | |||
Cash, December 31, 2015 | $ 52,400 | |||
Analyze the Cash Flow Statement for the Big Corporation). You obviously do not have access to all relevant information but you can identify potential concerns or areas of strength. Try to consider what these could mean for the company. Were they planned or unplanned? You do not know for sure but you can make reasonable assumptions and consider possible effects for the company. (You can type your analysis directly on this word document.)
Analyze the Cash Flows from Operating Activities identifying areas of strength and areas of concern:
Analyze the Cash Flows from Investing Activities identifying areas of strength and areas of concern :
Analyze the Cash Flows from Financing Activities identifying areas of strength and areas of concern:
Provide a summary analysis.Explain how strengths and concerns from operating activities could potentially relate to investing and financing decisions:
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