What is the net cash provided by operating activities in 2015E? ________ What is

Question

What is the net cash provided by operating activities in 2015E? ________

What is the net cash provided by investing activities in 2015E? ________

What is the net cash provided by financing activities in 2015E? ________

What is the company's net cash flow of 2015E? ________

What is the NOPAT of 2015E? ________

What is the NOWC of 2015E? ________

What is the Total Operating Capital of 2015E? ________

What is the company's FCF (free cash flow) of 2015E? ________

Questions 2-3 Sodor's Income Statement 2013 2014 2015E INCOME STATEMENT Net sales Costs of Gods Sold Except Depr. Depreciation and amortization Other Operating Expenses 6,417,840 $ 5,134,272 116,960 770,141 6,021,373 $ 396,467 $ 176,000 220,467 $ 88,167 132,280$ 7,059,624 5,506,507 116,960 847,155 6,470,622 589,002 176,000 413,002 165,201 247,801 5,834,400 $ 4,980,000 116,960 720,000 5,816,960 $ Total Operating Costs Earnings before interest and taxes (EBIT) Less interest 17,440 $ Pre-tax earnings Taxes (40%) Net Income 176,000 (158,560) $ (63,424) (95,136) S $11,000 40% Dividends $11,000 $26,000 Tax Rate 40% 40%

Explanation / Answer

For calculating cash provided by operating, investing and financing activities, we need to prepare statement of cash flows which is shown as follows:-

Cash Flow Statement for year 2015E (Amounts in $)

Working Notes:-

Book value of short term investments sold = $82,300-$82,081 = $219

Profit on sale of Short term Securities is calculated from balancing figure in retained Earnings balance which is shown as follows:-

Retained Earnings (Amounts in $)

Cash Received from sale of short term investments = $219+$1 = $220

1) Net cash provided by Operating activities is $705,762

2) Net Cash provided by Investing activities is $240,220

3) Net Cash used in Financing activities is $946,000

4) The company's net cash flow of 2015E is ($18)

Cash flows from Operating Activities Net Income 247,801 Adjustments to reconcile net income to net cash from operating activities Add: Depreciation and Amortization 116,960 Add: Decrease in Accounts Receivable ($645,708-$638,934) 6,774 Add: Decrease in Inventory ($1,502,228-$1,394,794) 107,434 Add: Increase in Accounts Payable ($279,400-$234,800) 44,600 Add: Increase in Notes Payable ($624,953-$480,000) 144,953 Add: Increase in Accruals ($247,720-$210,480) 37,240 Total adjustments 457,961 Net Cash provided by Operating Activities (A) 705,762 Cash Flows from Investing Activities Sale of short term investments [($82,300-$82,081)+$1 Profit] (Working Note) 220 Sale of Plant and Equipment ($1,744,076-$1,504,076) 240,000 Net Cash provided by Investing Activities (B) 240,220 Cash Flows from Financing Activities Repayments of Common Stock ($1,460,000-$1,000,000) (460,000) Dividends Paid (26,000) Payments for Long term bonds ($1,000,000-$540,000) (460,000) Net Cash used in Financing Activities (C) (946,000) Net Increase/(decrease) in cash and cash equivalents (A+B+C) (18) Add: Beginning Cash Balance 10,000 Closing Cash Balance 9,982

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