2. The following 20x5 information relates to Taylor, Inc.: . Net Income $365,000

Question

2. The following 20x5 information relates to Taylor, Inc.: .

Net Income $365,000Depreciation Expense 96,000 Amortization of Intangible Assets 11,000 Beginning Accounts Receivable 420,000 Ending Accounts Receivable 439,000 Beginning Inventory 516,000 Ending Inventory 560,000 Beginning Prepaid Expenses 48,000 Ending Prepaid Expenses 42,000 Beginning Accounts Payable 119,000 Ending Accounts Payable 146,000 Purchase of Long-Term Assets for Cash 616,000 Cash from Issuance of Long-Term Debt 200,000 Issuance of Stock for Cash 160,000 Issuance of Stock for Long-Term Assets 110,000 Purchase of Treasury Stock 64,000 Sale of Long-Term Investment at Cost 39,000 a. Calculate the net cash flows from operating activities. Show your work. b. Calculate the net cash flows from investing activities. Show your work. c. Calculate the net cash flows from financing activities. Show your work. d. Calculate the net change in cash. Show your work.

Explanation / Answer

Ans a Net Income 3,65,000.00 Add:Depreciation Expense      96,000.00 Add:Amortisation Expense      11,000.00 Operating Cash flow before WC Changes 4,72,000.00 Add: Increase in WC Increase in Accounts Receivable 19000 Increase in Inventory 44000 Less: Decrease in WC Decrease in Prepaid expenses -6000 Increase in Accounts payable -27000 Cash flow from operating activities 5,02,000.00 Ans b Purchase of long term assets -616000 Sale of long term investment 39000 Net Cash used in Investing Activities -577000 Ans c Cash from Issuance of Long-Term Debt 2,00,000.00 Issuance of Stock for Cash 1,60,000.00 Purchase of Treasury Stock    -64,000.00 Net Cash from Financing activity 2,96,000.00 Ans d Net change in cash 2,21,000.00

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.