Based on the following information answer question 1&3 Sales Revenue 1,780 share
ID: 2637607 • Letter: B
Question
Based on the following information answer question 1&3
Sales Revenue
1,780
shares repurchases
300
Net Income
267
increase in long-term debt
400
depreciation
20
dividend paid
20
increase in accounts receivable
50
sale of equipment
110
increase in inventory
60
Cash beginning of period
100
decrease in accounts payable
40
1. Calculate The change in cash (CFO + CFI+CFF)
a) 80
b) 107
c) 137
d) 327
2. Calculate cash at the end of the period
a) 180
b) 207
c) 237
d) 427
3. Calculate the net profit margin
a) 15%
b) 37.45%
c) 20%
d) 5.62%
Sales Revenue
1,780
shares repurchases
300
Net Income
267
increase in long-term debt
400
depreciation
20
dividend paid
20
increase in accounts receivable
50
sale of equipment
110
increase in inventory
60
Cash beginning of period
100
decrease in accounts payable
40
Explanation / Answer
1. Change in cash = 267 + 20 - 50 - 60 - 40 - 300 + 400 - 20 + 110 = 327. Thus, Option D
2. Cash at the end of the period = 327 + 100 = 427. Thus. Option D
3. Net profit margin = 267 * (100 / 1,780) = 15%. Thus, Option A
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