A company had the following changes in its balance sheet accounts Net sales $500 inc A/R 20 dec A/P 40 inc Inv 30 Sale common stock 100 Repayment debt 10 dep 2 net income 100 interest exp on debt 5 The companys cash flow from operations is a $10 b $12 c $92 d $192 The companys cf from investing is a $0 b $2 c $100 d $110 If the ending cash balance is $200, the beginning cash balance was a $90 b $92 c $110 d $198
B A and 3rd question should be 98…from my calculations…but don’t see it there… i should goto sleep its 4am…maybe im hallucinating
yeah, theres a 98 in Q3. Can you show your workings please? Thanks
Question 1 NI + Dep - Inc AR - Dec AP - Inc Inv = 100 + 2 - 20 - 40 - 30 = 12 (B) Question 2 A because there is no investing activities Question 3 Beginning Cash Balance = Ending Cash Balance - (CFO + CFI + CFF) = 200 - (12 + 0 + 90) = 98
What about the interest expense on debt?
since it is indirect method, already included in NI.
agreed with above. CFO = 100 + 2 - 20 - 40 - 30 = 12 CFI = 0 CFF = 100 - 10 = 90 BB Cash = 98 Change in Cash = 102 EB Cash = 200 don’t need sales and interest expense in this one and don’t have enough info to do direct method CF statement.