. Ledger Properties has the following financial information: Current Year Prior Year Revenues $ 48,915 $ 43,610 Administrative expenses 12,106 11,602 Interest expense 816 468 Cost of goods sold 29,715 26,309 Depreciation 1,408 1,387 Net...

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Accounting

. Ledger Properties has the following financial information:
Current Year
Prior Year
Revenues
$
48,915
$
43,610
Administrative expenses
12,106
11,602
Interest expense
816
468
Cost of goods sold
29,715
26,309
Depreciation
1,408
1,387
Net fixed assets
32,711
31,984
Current liabilities
14,652
14,625
Common stock
15,000
14,000
Current assets
16,506
14,687
Long-term debt
12,200
?
Retained earnings
7,365
4,246
Dividends paid
290
275
What is the cash flow of the firm for the current year if thetax rate is 22 percent?
A) $1,885
B) $1,042
C) $2,297
D) $2,096
E) $2,517

Answer & Explanation Solved by verified expert

3.7 Ratings (627 Votes)

Cash flow of the firm means the operating cash flows Operating Cash Flow is cash generated from normal operations ie day to day operations of the firm Operating Cash flow Operating Income Gross Income operating expenses which include selling general and See Answer

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	Current Year			Prior Year
Revenues		$	48,915		$	43,610
Administrative expenses			12,106			11,602
Interest expense			816			468
Cost of goods sold			29,715			26,309
Depreciation			1,408			1,387
Net fixed assets			32,711			31,984
Current liabilities			14,652			14,625
Common stock			15,000			14,000
Current assets			16,506			14,687
Long-term debt			12,200			?
Retained earnings			7,365			4,246
Dividends paid			290			275