Question
The financial statements of M Company appear below: 2019 2018 Cash $ 38,000 $ 23,000 Accounts receivable 26,000 34,000 Merchandise inventory 30,000 15,000 Property, plant,
The financial statements of M Company appear below:
2019
2018
Cash
$ 38,000
$ 23,000
Accounts receivable
26,000
34,000
Merchandise inventory
30,000
15,000
Property, plant, and equipment
50,000
78,000
Accumulated depreciation
(20,000)
(24,000)
Total Assets
$124,000
$126,000
Accounts payable
$ 17,000
$ 23,000
Income taxes payable
13,000
8,000
Bonds payable
7,000
33,000
Common stock
41,000
24,000
Retained earnings
46,000
38,000
Total Liabilities & Equity
$124,000
$126,000
2019
Sales
$400,000
Cost of goods sold
280,000
Gross profit
120,000
Operating expenses
46,000
Income from operations
74,000
Interest expense
4,000
Income before income taxes
70,000
Income tax expense
21,000
Net income
$ 49,000
The following additional data were provided: Dividends declared and paid were $41,000. During the year, equipment was sold for $15,000 cash. This equipment cost $28,000 originally & had a book value of $15,000 at the time of sale. Required: Prepare a statement of cash flows for M Company using the direct method. Carry out Cash Flow Analysis (Hint: Sources and Uses of Funds Analysis, Cash Flow Ratio Analysis (at least one Liquidity Ratio and one Coverage Ratio)
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Project Financing Analyzing And Structuring Projects
Authors: Frank J Fabozzi, Carmel De Nahlik
1st Edition
9811232393, 9789811232398
