Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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Students have asked these similar questions
The Sandhill Mills Company has just disclosed the following financial information in its annual report: sales of $1.47 million, cost of
goods sold of $815,300, depreciation expenses of $177,800, and interest expenses of $92,200. Assume that the firm has an average
tax rate of 29 percent. Compute the cash flows to investors from operating activity. (Round intermediate calculations and final answer to
2 decimal places, e.g. 15.25.)
Cash flow from operating activity
+A
The income statement for Angelonia reports net sales of $91,558 million and cost of goods sold of $69,078 million. An examination of
balance sheet amounts indicates accounts receivable increased $1,713 million, inventory increased $863 million, and accounts payable
to suppliers decreased $1,947 million.
Required:
Using the direct method, calculate (1) cash received from customers and (2) cash paid to suppliers. (Amounts to be deducted should
be indicated with a minus sign. Enter your answers in millions (i.e., $10,110,000 should be entered as 10.11).)
Net sales
Cash Received from Customers:
Cash received from customers
Purchases
Cash Paid to Suppliers:
Cost of goods sold
Cash paid to suppliers
Financial Information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars)
Sales
Operating costs excluding depreciation and amortization
EBITDA
Depreciation and amortization
Earnings before interest and taxes (EBIT)
Interest
Assets
Cash and equivalents
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Accounts payable
Accruals
Earnings before taxes (EBT)
Taxes (25%)
Net Income
Common dividends
Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars)
2020
2021: $
b. What was the 2021 free cash flow?
2021
$3,300.0
2,805.0
$495.0
$
2020
$3,000.0
2,550.0
$450.0
72.0
$378.0
66.0
$312.0
124.8
$187.2
$181.6 $149.8
-Select-
86.0
$ 409.0
72.6
$ 336.4
134.6
$201.8
2021
50.0 $
483.0
725.0
$1,258.0
864.0
$2,122.0
$264.0
225.0
Notes payable
66.0
Total current liabilities
$ 555.0
Long-term bonds
660.0
Total liabilities…
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Similar questions
- Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400arrow_forwardLast year Lawsby Company reported sales of P120,000 on its income statement. During the year, accounts receivable increased by P10,000 and accounts payable increased by P15,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be:arrow_forwardJJ's has net sales of $48,920, depreciation of $711, cost of goods sold of $31,890, administrative costs of $11,210, interest expense of $680, dividends paid of $450, and taxes of $974. What is the cash flow from operating activities as it will appear on the accounting statement of cash flows if the firm spent $274 on net working capital?arrow_forward
- using the income statement for chester corp below, what is operating cash flow (OCF) for the company? sales- 925,000 COGS- 458,000 Dep Exp- 195,000 EBIT- 272,000 Int exp- 55,800 EBT- 216,200 Taxes- 45,402 NI- 170,798arrow_forwardJJ's has net sales of $48,920, depreciation of $711, cost of goods sold of $31,890, administrative costs of $11,210, interest expense of $680, dividends paid of $450, and a tax rate of 20%. What is the net cash from operating activities as it will appear on the accounting statement of cash flows if the firm spent $274 on net working capital? $3,980 $3,056 $3,667 $4,066arrow_forwardUmberg Company started the year with $119,200 cash and reported net cash provided by operating activities of $240,000, cash paid for dividends of $49,600, cash received from stock issuance of $46,000, cash paid for equipment purchases of $158,000, cash paid for intangible assets of $124,000, and cash paid on bank loan of $43,000. Required: Calculate the following: Net cash provided by (used in) investing activities. Net cash provided by (used in) financing activities. Ending cash. Free cash flow.arrow_forward
- Gladys Inc. reported current assets totaling $65,800 and current liabilities totaling $28,750 at December 31, Year 2. The company’s income statement and statement of cash flow for Year 2 appear below: Calculate the following ratios and measures for Gladys Inc. for Year 2: Operating funds ratio, Operating cash flow-to-current liabilities ratio, Cash conversion ratio, Earnings before interest, taxes, depreciation and amortization (EBITDA), Free cash flow, Discretionary cash flowarrow_forwardThe balance sheets of Xenon Company reports total assets of $888,000 and $949,000 at the beginning and end of the year, respectively. Sales revenues are $1.8 million, net income is $194,000, and net cash flows from operating activities are $162,000. Required: Calculate the cash return on assets, cash flow to sales, and asset turnover. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) Cash return on assets Cash flow to sales Asset turnover % % timesarrow_forwardThe financial statements of Minnesota Mining and Manufacturing Company (3M) report net sales of $20.0 billion. Accounts receivable (net) are $2.7 billion at the beginning of the year and $2.8 billion at the end of the year. Compute 3M’s receivables turnoverarrow_forward
- The following data and information are provided for Waltz Corporation. Use net income after taxes as margin. Sales Revenue $1,000,000 Average total assets used during the year = $200,000 Cost of Goods Sold -500,000 Inventory = $60,000 Gross Margin 500,000 Long-term liabilities = $100,000 Selling Expenses -386,000 Accounts receivable = $10,000 Administrative Expenses -80,000 Cost of total invested capital = 12% Net Operating Income 34,000 Fixed expenses = $300,000 Other Income & Expense -6,000 Variable expenses = 666,000 Net Income before Taxes 28,000 Average price per unit sold = $10 Income Taxes -8,000 Net Income after Taxes $ 20,000…arrow_forwardThe Crane Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.473 million, cost of goods sold of $817,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.)arrow_forwardAnalysis reveals that a company had a net increase in cash of $21,540 for the current year. Net cash provided by operating activities was $19,400; net cash used in investing activities was $10,700 and net cash provided by financing activities was $12,840. If the year-end cash balance is $26,100, the beginning cash balance was: $47,640. $16,980. $4,560. $42,080. $43,080.arrow_forward
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