Question
Ritter Corporations accountants prepared the following financial statements for year-end 2019: (Do not round intermediate calculations.) RITTER CORPORATION Income Statement 2019 Revenue $ 940
| Ritter Corporation’s accountants prepared the following financial statements for year-end 2019: (Do not round intermediate calculations.) |
| RITTER CORPORATION | ||
| Income Statement | ||
| 2019 | ||
| Revenue | $ | 940 |
| Expenses | 660 | |
| Depreciation | 109 | |
| Net income | $ | 171 |
| Dividends | $ | 151 |
| RITTER CORPORATION | |||||
| Balance Sheets | |||||
| December 31 | |||||
| 2018 | 2019 | ||||
| Assets | |||||
| Cash | $ | 74 | $ | 103 | |
| Other current assets | 184 | 208 | |||
| Net fixed assets | 389 | 409 | |||
| Total assets | $ | 647 | $ | 720 | |
| Liabilities and Equity | |||||
| Accounts payable | $ | 134 | $ | 163 | |
| Long-term debt | 159 | 183 | |||
| Stockholders’ equity | 354 | 374 | |||
| Total liabilities and equity | $ | 647 | $ | 720 | |
| a. | What is the change in cash during 2019? |
| b. | Determine the change in net working capital in 2019. |
| c. | Determine the cash flow generated by the firm’s assets during 2019. |
Step by Step Solution
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a The change in cash during 2019 is 103 2019 Cash 74 2018 C...
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
