Plz solve it Below is a summary of the three activity sections of the Statement
ID: 2505219 • Letter: P
Question
Plz solve it
Below is a summary of the three activity sections of the Statement of Cash Flow for Seven Dwarf Designs Limited. Seven Dwarf Designs Limited Partial Statement of Cash Flow Year Ended December 31.2007 2007 Net cash provided by operating activities $2.350.000 Net cash provided by inverting activities $(1.563.000) Net cash provided by financing activities $(395.000) Net cash provided $392,000 What is your analysis of the company as presented by the Statement of Cash Flows? What additional information would you want to see in order to make a decision to reinvest in this company?Explanation / Answer
PART-A
ANALYSIS
NET CASH INFLOW FROM OPERATING ACTIVITIES = 2350000
NET CASH OUTFLOW FROM INVESTING ACTIVITIES = (1563000)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES = (395000)
NET CASH INFLOW DURING THE YEAR = 392000
PART-B
DETAILS OF EACH HEADINGS OPERATING , INVESTING & FINANCING ACTIVITIES.
EXAMPLE:-STATEMENT OF CASHFLOWS
(dollars in millions) 1998 1997 1996
Operating activities:
Net earnings $ 849 $ 775 $ 755
Adjustments for noncash items included in earnings:
Depreciation and amortization 439 412 374
Deferred income taxes 48 58 45
Deferred and unearned compensation 5 8 10
Working capital changes* 158 265 142
Other assets and liabilities, net 6 8 (43)
Total operating activities 1,505 1,526 1,283
Investing activities:
Capital expenditures (630) (496) (632)
Dispositions of property and equipment 44 33 29
Acquisition (302)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.