(in thousands) Cash inflow (outflow) from operating activities Cash inflow (outflow) from investing activities: Proceeds from sale of plant and equipment Purchase of plant and equipment Cash inflow (outflow) from financing activities: Proceeds from issuance of debt Repayment of debt Net increase (decrease) in cash. Average assets Fraser $ 70,000 O Fraser O Singh Travis (29,200) Singh $ 62,000 (27,000) (4,400) 36,400 646,000 526,000 35,000 Travis $(26,000) 34,000 32,400 41,200 326,000 Required: Which of the three competing corporations is in the strongest relative position as indicated by its comparative statements of cash flows?

(in thousands) Cash inflow (outflow) from operating activities Cash inflow (outflow) from investing activities: Proceeds from sale of plant and equipment Purchase of plant and equipment Cash inflow (outflow) from financing activities: Proceeds from issuance of debt Repayment of debt Net increase (decrease) in cash. Average assets Fraser $ 70,000 O Fraser O Singh Travis (29,200) Singh $ 62,000 (27,000) (4,400) 36,400 646,000 526,000 35,000 Travis $(26,000) 34,000 32,400 41,200 326,000 Required: Which of the three competing corporations is in the strongest relative position as indicated by its comparative statements of cash flows?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.24MCE

See similar textbooks

Similar questions

Please answer Part B and C. The following are answers from previous questions in case you need the below information. Operating Cash Flow: Operating Cash Flow (OCF)= Net Income + Depreciation – Increase in Working Capital. OCF=419,573+11,751-110,249= 321,075 Net Capital Spending: Net capital expenditures (NCE) = Fixed asset (current period) - Fixed asset (prior period) + depreciation (current period) NCE=258,251-261,779+11,751 =8,223 iii. Change in Net Working Capital Net Working Capital (NWC)= Current assets- current Liabilities Year 2019 : NWC =421,609-148,087 =273,522 Year 2020 : NMW= 550,572-166,801 =383,771 Change in Net Working Capital = 383,771-273,522=110,249 Sl.NO PARTICULARS AMOUNT EBIT + DEPRECIATION - TAXES = 597976+11751-178055= $ 431,672 ii] NET CAPITAL SPENDING: ENDING NET FIXED ASSETS - BEGINNING NET FIXED ASSETS + DEPRECIATION = 258251-261779+11751= $ 8223 iii] CHANGE IN NET WORKING…
I. Operating ActivitiesNet income $ 50,000II. Long-Term Investing ActivitiesAdditions to property, plant, and equipment $ (250,000)III. Financing ActivitiesNet cash provided by financing activities $ 170,000IV. SummaryNet decrease in cash (30,000)Cash and equivalents at beginning of the year 55,000Cash and equivalents at the end of the year $ 25,000If accruals increased by $25,000, receivables and inventories increased by $100,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?
A CasIT TIOW Duuge [vl section refers to inflows and outflows from the purchase/sale of non-current assets. The [z] section includes inflows and Butiows ITU STIUIT UI TOng lem borro Question 7 Annual Operating Loan Quarter 1 Quarter 2 Beginning Cash Balance 3,000 [5] + Net Cash Flow -13,530 + Operating Loan Borrowing [1] Operating Loan Payment [2] = Ending Cash Balance [3] 2,500 Beginning Operating Loan Balance 25,000 Ending Operating Loan Balance [4] Required Minimum Account Balance: $2,500 Do not include commas or dollar signs here to search End F10 PrtScn DII Home F9 F2 F3 F4 F5 F6 F7 F8 &
Required information E12-13 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of Sale of Plant and Equipment [The following information applies to the questions displayed below.] During two recent years, Perez Construction, Inc., disposed of the following plant and equipment: Year 1 $ 76,200 Plant and equipment (at cost) Accumulated depreciation on equipment disposed of Cash received Gain (loss) on sale E12-13 Part 1 42,785 20,264 (13, 151) Year 2 $15,900 4,973 14,563 3,636 Required: 1. Determine the cash flow from the sale of property for each year that would be reported in the investing activities section of the cash flow statement. (List cash outflows as negative amounts.)
Estimate the average total estimated useful life of depreciable property, plant, and equipment. Starbucks reports 580.6 million of depreciation and amortization in the statement of cash flows, of which 4.5 million relates to amortization of limited-life intangible assets. Does the estimate reconcile with stated accounting policy on useful lives for property, plant, and equipment? Explain.
Based on the following information, compute cash flows from financing activities under GAAP.Purchase of investments $ 250Dividends paid 1,200Interest paid 400Additional borrowing from bank 2,800
PART B Assume that the bank decided to give a loan of $ 59 million to Nivea Corporation (recorded for initial year). Nivea-Corporation invested the amount in a project and generated the following sequence of cash flows over six years: Year Cash Flow ($ million) 0 -59.00 1 4.00 2 5.00 3 6.00 4 7.33 5 8.00 6 8.25 Calculate the Payback period Calculate the Net Present Value (NPV) and the Profitability Index (PI) over the six years. Assume any discount rate This project does not end after the sixth year but instead will generate cash flows far into the future. Estimate the project’s terminal value, assuming that cash flows after year 6 continue at $8.25 per year perpetuity and then recalculate the investment’s NPV. Calculate the terminal value assuming that cash flows after the sixth year grow at 2% annually in perpetuity, and then recalculate the
According to the information given in the table below, which of the following is cash flow from financing activities? Increase in loan 25800 Increase in bonds 84000 Decrease in common stock 29600 Increase in land 18500 22222 Depreciation Select one: O a. -39478 O b. 19300 O c. 44444 O d. 80200
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: Date Item Debit Credit BalanceDebit BalanceCredit January 1 Balance 1,131,000 March 12 Purchased for cash 385,000 1,516,000 October 4 Sold for $211,000 181,000 1,335,000 Item Section of Statement ofCash Flows Added or Deducted Amount March 12: Purchase of fixed asset $fill in the blank 3 October 4: Sale of fixed asset $fill in the blank 6 Gain on sale of fixed asset (assume the indirect method) $fill in the blank 9
EXPLORE Name: Time: Instructions: Based on the following data needed for cash flows preparation, 1) indicate whether each item enumerated is an inflow or and an outflow (outflows are enclosed in parenthesis) in operating, investing and financing activity; 2) compute net cash provided by (used in) operating activities. Items O perating Investing Financing 200,000 ExAcquisitio n of Land Initial investment by proprietor -200,000 300,000 300,000 Payment of rental 120,000 2 Cash received from services rende red 50,000 Investment by owner 25,000 4 Payment of utilites expense 65,000 5 Collection from customer's accounts 90,000 6 Proceeds from sale ofequipment Remitance of withholding tax 100,000 2,500 8 W ithdraw al by owner 15,000 9 Purchase ofequipment 5,000 10 Proceeds from a bank loan 100,000 11 Purchase of supplies 25,000 12 Payment of taxes and licenses 13 Remittance of SSS and Philhealth premiums 10,000 and contributions 4,500 14 Payment of accounts to suppliers 28,200 15 Additional…
Blossom Ltd. Statement of Financial Position December 31 Assets 2024 2023 Cash $29,000 $0 Accounts receivable 27,000 38,000 Inventory 34,000 57,000 Land 96,000 108,000 Buildings 528,000 262,000 Accumulated depreciation-buildings (71,000) (102,000) Equipment 74,000 38,000 Accumulated depreciation-equipment (15,000) (8,000) Total assets $702,000 $393,000 Liabilities and Shareholders' Equity Bank indebtedness $0 $8,000 Accounts payable 46,000 27,000 Income tax payable Interest payable 3,000 2,000 6,000 7,000 Dividends payable 3,000 1,000 Bank loan payable-current portion 30,000 17,000 Bank loan payable-non-current portion 364,000 208,000 Common shares 198,000 90,000 Retained earnings 52,000 33,000 Total liabilities and shareholders' equity $702,000 $393,000 Additional information regarding 2024: A gain of $8,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 1. Net income was $56,000. 2. 3. 4. A gain on disposal of $40,000 was recorded when…
Information on four investment proposals is given below:Investment ProposalA B C DInvestment required ........................ $(90,000) $(100,000) $(70,000) $(120,000)Present value of cash inflows ......... 126,000 138,000 105,000 160,000Net present value ............................ $ 36,000 $ 38,000 $ 35,000 $ 40,000Life of the project ............................ 5 years 7 years 6 years 6 yearsRequired:1. Compute the project profitability index for each investment proposal.2. Rank the proposals in terms of preference.