American Eagle Finances Chapter 11 Problem 2 Financial Accounting Using: http://
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Question
American Eagle Finances Chapter 11 Problem 2 Financial Accounting
Using: http://highered.mcgraw-hill.com/sites/dl/free/0078110823/859850/spi10823_appA_A1_A38.pdf
and http://www.chegg.com/homework-help/financial-information-american-eagle-presented-appendix-end-chapter-11-problem-2ap-solution-9780078110825-exc
What are the changes in cash and cash equivalents for most recent year?
What was the net cash from operating activities, is net cash from operating activities increasing each year?
What is the largest reconciling item between net income and net operating cash flows?
What was net cash from investing activities for the most recent year? Is it positive or negative?
What is the largest investing activity during he most recent year?
What was net cash from financing activities for the most recent year? Is negative financing activities a good or bad sign?
What is the largest financing activity during the most recent year?
Explanation / Answer
What are the changes in cash and cash equivalents for most recent year?
This is equal to 693,960-473,342 = 220,618
What was the net cash from operating activities, is net cash from operating activities increasing each year?
Net cash from operating activities = 386,462
Yes, the net cash from operating activities is increasing each year.
What is the largest reconciling item between net income and net operating cash flows?
The largest reconciling item between net income and net operating cash flows was depreciation and amortization. This reconciling figure was 147,483.
What was net cash from investing activities for the most recent year? Is it positive or negative?
Net cash from investing activities was -49,069. This is a negative figure, indicating there was net cash used in investing.
What is the largest investing activity during the most recent year?
The largest investing activity was capital expenditures. This figure was -127,419.
What was net cash from financing activities for the most recent year? Is negative financing activities a good or bad sign?
Net cash from financing activities was - 119,805. This is a negative figure, indicating there was net repayment of financing. Negative figure is a good sign indicating the company is not dependent on external financing to grow and that its internal accruals are throwing up enough cash to repay external liabilities.
What is the largest financing activity during the most recent year?
The largest financing activity was cash dividend paid. This figure was -82,985.
Hope this helped ! Let me know in case of any queries.
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