Net income for the year 2019 was $15,000. Accounts receivable increased $12,000, inventories decreased $4,000, and accounts payable decreased $5,000. Depreciation expense included in net income was $6,000. During the year, a piece of land was purchased for $7,000 and a truck was sold for $4,000 when its book value was $5,500. The company borrowed $28,000 on a two-year note from the bank and repaid $15,400 on a short-term note. Dividends of $16,000 were declared during 2019. The balance in Dividends Payable increased by $10,000 for the year. What was net cash flow from operating activities (if a decrease, place your result in parentheses)? Correct Answer: $

Net income for the year 2019 was $15,000. Accounts receivable increased $12,000, inventories decreased $4,000, and accounts payable decreased $5,000. Depreciation expense included in net income was $6,000. During the year, a piece of land was purchased for $7,000 and a truck was sold for $4,000 when its book value was $5,500. The company borrowed $28,000 on a two-year note from the bank and repaid $15,400 on a short-term note. Dividends of $16,000 were declared during 2019. The balance in Dividends Payable increased by $10,000 for the year. What was net cash flow from operating activities (if a decrease, place your result in parentheses)? Correct Answer: $

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 1P

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During 2021, New Era Inc. constructed assets costing $1,000,000. The weighted-average accumulated expenditures on these assets during 2021 was $600,000. To help pay for construction, $440,000 was borrowed at 10% on January 1, 2021 , and funds not needed for construction were temporarily invested in short-term securities, yielding $9,000 in interest revenue. Other than the construction funds borrowed, the only other debt outstanding during the year was a $500,000, 10-year, 9% note payable dated January 1, 2015. What is the amount of interest that should be capitalized by New Era Inc. during 2021? $
See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $12 million in 2022. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $1.5 million; however, a change in the depreciation schedule (still within GAAP) has now made the depreciation expense DOUBLE. Based on this change in depreciation expense, what would XYZ's net income now be? Select one or more: a. so b. $3,000,000 c. $1,500,000 Od. Not enough information to tell
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