Question
Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended Dec.
Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended Dec. 31, 2010.
(a) Operating Cash Flow
(b) Free Cash Flow
For the year ended December 31,
Depreciation
2009
2010 $3,000
EBIT
2009
2010 $30,000
Interest Expenses
2009
2010 $3,000
Taxes
2009
2010 $8,000
Cash
2009 $21,000
2010 $24,000
Accounts Receivable
2009 $39,000
2010 $45,000
Inventory
2009 $27,000
2010 $30,000
Net Fixed Assets
2009 $22,000
2010 $24,000
Accounts Payable
2009 $25,000
2010 $30,000
Notes Payable
2009 $50,000
2010 $40,000
Accruals
2009 $1,000
2010 $2,000
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