Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Net income Depreciation Expense Change in Accounts Receivable Change in Inventory Change in Accounts Payable OPERATING CASH FLOWS Acquisitions of fixed assets INVESTING CASH FLOWS
Net income |
Depreciation Expense |
Change in Accounts Receivable |
Change in Inventory |
Change in Accounts Payable |
OPERATING CASH FLOWS |
Acquisitions of fixed assets |
INVESTING CASH FLOWS |
Change in Notes Payable |
Change in Long-term debt |
Change in Common stock |
FINANCING CASH FLOWS |
NET CHANGE IN CASH |
CASH AT BEGINNING OF YEAR |
CASH AT END OF YEAR |
2019 | 2018 | change | |
Cash | 200,000 | 170,000 | 30,000 |
Accounts Receivable | 864,000 | 700,000 | 164,000 |
Inventory | 2,000,000 | 1,400,000 | 600,000 |
- | |||
Net Fixed assets | 6,000,000 | 5,600,000 | 400,000 |
- | |||
Accounts Payable | 1,400,000 | 1,090,000 | 310,000 |
Notes Payable | 1,600,000 | 1,800,000 | (200,000) |
- | |||
Long term debt | 2,400,000 | 2,400,000 | - |
Common Stock | 3,000,000 | 2,000,000 | 1,000,000 |
Retained Earnings | 664,000 | 580,000 | 84,000 |
Assume the following additional information: | |||
1. net income after taxes for the year 2019 was $84,000; EBIT was $106,329. | |||
2. Depreciation expense for 2019 was $300,000 | |||
3. Acquisitions of fixed assets were $700,000 in 2019 | |||
4. No dividends were paid during 2019 | |||
5. The firm's tax rate is 21% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started