Question
Cornerstone Exercise 11-20 (Algorithmic) Determining Net Cash Flow from Investing Activities Davis Inc. reported the following information: 12/31/2019 12/31/2018 Equipment $160,000 $115,000 Accumulated depreciation (85,000)
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Cornerstone Exercise 11-20 (Algorithmic) Determining Net Cash Flow from Investing Activities
Davis Inc. reported the following information:
12/31/2019 12/31/2018 Equipment $160,000 $115,000 Accumulated depreciation (85,000) (59,000) Investment (long-term) 18,610 10,000
In addition, Davis sold equipment costing $12,500 with accumulated depreciation of $9,250 for $2,330 cash, producing a $920 loss. Davis reported net income for 2019 of $122,350.
Required:
Compute net cash flow from investing activities. Use a minus sign to indicate negative cash flows (outflows)
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xercise 11-46 (Algorithmic) Analyzing the Statement of Cash Flows
Information for Ditka Inc. and McMahon Company is given below:
Ditka Inc McMahon Company Cash provided by operating activities $2,475,000 $1,639,000 Capital expenditures 1,157,000 748,000 Dividends 272,000 190,000 Average debt maturity over next 5 years 1,988,000 1,212,000
Required:
Compare Ditka's and McMahon's free cash flow and cash flow adequacy ratio. Round ratio to two decimal places.
Free Cash Flow Adequacy Ratio Ditka Inc. $ McMahon Company $
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Cornerstone Exercise 11-20 (Algorithmic) Determining Net Cash Flow from Investing Activities
Davis Inc. reported the following information:
| 12/31/2019 | 12/31/2018 | |||
| Equipment | $160,000 | $115,000 | ||
| Accumulated depreciation | (85,000) | (59,000) | ||
| Investment (long-term) | 18,610 | 10,000 | ||
In addition, Davis sold equipment costing $12,500 with accumulated depreciation of $9,250 for $2,330 cash, producing a $920 loss. Davis reported net income for 2019 of $122,350.
Required:
Compute net cash flow from investing activities. Use a minus sign to indicate negative cash flows (outflows)
xercise 11-46 (Algorithmic) Analyzing the Statement of Cash Flows
Information for Ditka Inc. and McMahon Company is given below:
| Ditka Inc | McMahon Company | ||||
| Cash provided by operating activities | $2,475,000 | $1,639,000 | |||
| Capital expenditures | 1,157,000 | 748,000 | |||
| Dividends | 272,000 | 190,000 | |||
| Average debt maturity over next 5 years | 1,988,000 | 1,212,000 | |||
Required:
Compare Ditka's and McMahon's free cash flow and cash flow adequacy ratio. Round ratio to two decimal places.
| Free Cash Flow | Adequacy Ratio | |
| Ditka Inc. | $ | |
| McMahon Company | $ |
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