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FAFNA - Sample Problems #3 Practice Problem with Cash Flow SHOW YOUR WORK FOR CALCULATION PROBLEMS Given the following information, calculate the Cash Flow using
FAFNA - Sample Problems #3 Practice Problem with Cash Flow SHOW YOUR WORK FOR CALCULATION PROBLEMS Given the following information, calculate the Cash Flow using the Direct and Indirect Methods. ($ 000) Year 1 Year 2 Net income 7,800 18,600 Deprec., Depletion & Amortiz. 3,000 4,000 Capital Spending 6,000 8,000 Repayment of Long Term Debt 2,000 2,000 Dividends paid to shareholders 2,800 2,800 Cash Balance [end of Year 0] 3,000 Cash Balance [end of Year 1] ? Cash Balance [end of Year 2] ? Cash Received from customers 25,800 42,600 Cash Payments [for operations] 14,000 20,000 Increase in Current Assets 750 Increase in Current Liabilities 250 1,000 NOTE: Account items highlighted need to be calculated based on the information given so that you may correctly present the solution on both Direct and Indirect methods. Remember you must include reconciliation when presenting Direct method
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