Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ Inc presents the following for the year ended December 31, 2040: Description Amount ($) Sales 25,200,000 Cost of goods sold 15,120,000 Selling expenses 2,520,000
XYZ Inc presents the following for the year ended December 31, 2040:
Description | Amount ($) |
Sales | 25,200,000 |
Cost of goods sold | 15,120,000 |
Selling expenses | 2,520,000 |
Administrative expenses | 630,000 |
Interest expense | 360,000 |
Gain on sale of vehicle | 190,000 |
Income tax expense | 460,000 |
Additional information:
- Depreciation of $690,000 is included in selling expenses and $230,000 in administrative expenses.
- A vehicle was sold for $3,200,000 cash. This vehicle cost $3,400,000 and had a carrying value of $3,000,000.
- New vehicle was purchased for $1,700,000 cash.
- Dividends of $920,000 were declared and paid.
- Purchased 3,800 treasury shares for $380,000.
Requirements:
- Calculate the cash flows from operating activities.
- Determine the cash flows from investing activities.
- Compute the cash flows from financing activities.
- Identify the ending cash balance.
- Reconcile net income to net cash provided by operating activities.
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