FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Excel Technology is considering seller-finance for an existing customer with the following information. The net income is $120MM. The depreciation cost is $10MM. What is

Excel Technology is considering seller-finance for an existing customer with the following information. The net income is $120MM. The depreciation cost is $10MM. What is the subject firm's cash flow from operations (CFO)? Show your calculations (9 points)

Decrease in accounts receivable

$30 MM

Issuance of new stocks

17

Proceeds from the sale of fixed assets

5

Increase in inventory

17

Increase in accounts payable

15

Dividends paid out

35

Decrease in wages payable

15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

The accompanying table gives the cost and an overall quality rating for 10 different brands of mens athletic shoes and nine different brands of womens athletic shoes (www.consumerreports.org). Cost...

Answered: 1 week ago

Question

★★★★★
When rental cars are sold on the used car market, they are sold for lower prices than cars of the same model and year that were owned by individual owners. Does this price difference reflect adverse...

Answered: 1 week ago

Question

★★★★★
Grace (41) took an early distribution of $15,000 from her IRA in 2021 and used the funds to help purchase her first home. This was not a coronavirus-related distribution, and she did not qualify for...

Answered: 1 week ago

Question

★★★★★
Suppose the premium on a 6 - month 9 5 0 - strike S&R call is $ 1 2 0 . 4 1 and the premium on a put with the same strike price is $ 5 1 . 7 8 , while the premium on a 6 - month 1 0 0 0 - strike S&R...

Answered: 1 week ago

Question

★★★★★
Flyaway Rural Airlines is planning to add the following three aitcraft to its fleet, an Airbus, a Boeing and an fimbraer, with the following characteristic: Part A: Calculate the weighted average...

Answered: 1 week ago

Question

★★★★★
Nithya is setting up QuickBooks Online for the first time. When would she enter an opening balance? Select an answer: when a customer has a balance in her previous accounting system when she wants to...

Answered: 1 week ago

Question

★★★★★
You are a chairperson of source selection, evaluation board for a new jet engine. You had to brief a SSEB member on the procedures for protecting source selection, information what procedures would...

Answered: 1 week ago

Question

★★★★★
Hi-Tech Commerce Co. (HTC) sells and provides service of efficient end-to-end communications and IT systems and solutions. One of the company's key products and services includes Telecom and IT...

Answered: 1 week ago

Question

★★★★★
2) See each part for the question to answer. a) Paulette is looking to decide which of two online ad campaigns (lets call them A and B) would generate the highest purchase conversion. Describe how...

Answered: 1 week ago

Previous Question Next Question