Using the following information to answer questions (short answer) Below are the 2017 and 2018 year-end balance sheets...

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Finance

Using the following information toanswer questions (short answer)

Below are the 2017 and 2018 year-endbalance sheets for firm AAA:

Assets:                                                                     2018                                       2017      

Cash                                                                          --------                                  158,000

Accountsreceivable                                                  864,000                                  700,000

Inventories                                                            2,000,000                              1,400,000

Total currentassets                                            $3,064,000                             $2,270,000

Net fixedassets                                                     6,000,000                              5,600,000

Totalassets                                                                ---------                                 -----------

Liabilities and equity:

Accountspayable                                                 $1,400,000                             $1,090,000

Notespayable                                                       1,600,000                              1,800,000

Total currentliabilities                                      $3,000,000                             $2,890,000

Long-termdebt                                                     2,400,000                              2,400,000

Commonstock                                                      3,000,000                              2,000,000

Retainedearnings                                                    664,000                                  580,000

Total commonequity                                         $3,664,000                             $2,580,000

Total liabilities andequity                                    -------------                            ---------------

Assume sales in 2017 and 2018 were thesame. 200,000 = depreciation. 500,000 = net income. No dividendpaid.

1. Calculate net cash flow fromoperation.

2. Calculate net cash flow frominvestment.

3. Calculate net cash flow fromfinancing.

4. Calculate net changes in cash

Answer & Explanation Solved by verified expert
3.9 Ratings (518 Votes)
Answer 1 Net Cash flow from Operations Net Income 50000000 Depreciation 20000000 Increase in Accounts Receivable 16400000 Increase in Inventories 60000000 Increase in Accounts Payable 31000000 Net Cash flow from    See Answer
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Using the following information toanswer questions (short answer)Below are the 2017 and 2018 year-endbalance sheets for firm AAA:Assets:                                                                     2018                                       2017      Cash                                                                          --------                                  158,000Accountsreceivable                                                  864,000                                  700,000Inventories                                                            2,000,000                              1,400,000Total currentassets                                            $3,064,000                             $2,270,000Net fixedassets                                                     6,000,000                              5,600,000Totalassets                                                                ---------                                 -----------Liabilities and equity:Accountspayable                                                 $1,400,000                             $1,090,000Notespayable                                                       1,600,000                              1,800,000Total currentliabilities                                      $3,000,000                             $2,890,000Long-termdebt                                                     2,400,000                              2,400,000Commonstock                                                      3,000,000                              2,000,000Retainedearnings                                                    664,000                                  580,000Total commonequity                                         $3,664,000                             $2,580,000Total liabilities andequity                                    -------------                            ---------------Assume sales in 2017 and 2018 were thesame. 200,000 = depreciation. 500,000 = net income. No dividendpaid.1. Calculate net cash flow fromoperation.2. Calculate net cash flow frominvestment.3. Calculate net cash flow fromfinancing.4. Calculate net changes in cash

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