What is the net cash provided from operating activities in 2017? What is the net

Question

What is the net cash provided from operating activities in 2017?

What is the net cash used in investing activities in 2017?

What is the net cash provided from financing activities in 2017?

What is the net increase in cash and marketable securities for 2017?

What is the final value for cash and marketable securities at the end of 2017?

2016 Sales Cost of Goods Sold Gross Margin Depreciation Administrative Costs EBIT Interest Pre-tax income Taxes Net Income Dividends 2017 $100,000.00 $144,900.00 $60,000.00 $86,940.00 $40,000.00 $57,960.00 $16,000.00 $19,200.00 $9,000.00 $10,800.00 $15,000.00 $27,960.00 $4,000.00 $4,000.00 $11,000.00 $23,960.00 $4,400.00 $9,584.00 $6,600.00 $14,376.00 $0.00 $8,625.60 Addition to Retained Earnings $6,600.00 $5,750.40 BALANCE SHEET AS OF 12/31/2017: ASSETS 2016 2017 $5,000.00 $6,000.00 $15,000.00 $18,000.00 Accounts Receivable $15,000.00 $21,735.00 $35,000.00 $45,735.00 $80,000.00 $92,000.00 $115,000.00 $137,735.00 Cash Inventory Current Assets Net PPE Total Assets (TA) 2016 LIABILITIES&SHAREHOLDER; EQUITY Accounts Payable Current Liabilities Long Tem Debt Total Liabilities Shareholder Equity Total Liabilities and Shareholder Equity 2017 $25,000.00 $30,000.00 $25,000.00 $30,000.00 $40,000.00 $51,984.60 $65,000.00 $81,984.60 $50,000.00 $55,750.40 $137,735.00 $115,000.00

Explanation / Answer

(a) Cash flow from operating activity = Net Income + Depreciation - Increase in Current assets + Increase in current liabilities

Net Income =14,376

Depreciation = 19,200

Increase in current assets = 45,735 - 35,000 = 10.735

Increase in current liabilities = 30,000 -25,000 = 5,000

Net cash flow from oeprating activities = 14,376 + 19,200 -10,735 + 5,000 = 27,841

(b) Cash used in investing activities = Cash used for purchase of Plant, property and equipment (PPE) = 92,000-80,000 =12,000

Cash used in investing activities = 12,000

(c) Cash priovided from financing activities = Cash receipts from increase in bond issue - Dividends paid

Cash receipts from new bond issue in 2017 = 51,984.60 - 40,000 = 11,984.60

Divdend paid = 8,625

Cash from financing activities = 11,984.60 - 8,625 = 3,359.60

(d) Increase in cash and marketable securities = 6,000 -5,000 = 1,000

(e) Final value of cash and marketable securities in 2017 = 6,000

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