# Porjected net cash flow

sales 5000 increase in account receivable 200 increase in inventories 100 salary payment 1500 rent and lease payments transfer to subsidiary for office lease payment 120 payments for purchases 800 proceeds from bank loan 700 equitpment purchase 600 tax payment 800 then projected net cash folwo?= 1080 1380 1480 2080?

Is there supposed to be a number next to rent and lease payments?

Dapper425 Wrote: ------------------------------------------------------- > Is there supposed to be a number next to rent and > lease payments? sorry … Rent and lease payment 400

is it 1380?

a:1080

ssdnola Wrote: ------------------------------------------------------- > a:1080 reason?

I think it’s b: 1380 = 5000-200-(-100+1500+400+120+800+600+800)+700

Step 1: Revenues (5000) +/- Decrease(increase) in accounts receivables (-200) =Cash collected from customers Step 2: +Cash investment income (0, no information) Step 3: COGS (-800, the purchases) +/- Increase(decrease) in inventory (-100) +/- Decrease(increase) in accounts payable(0, no information) =Cash paid to suppliers Step 4: Salaries and wages expense(-1500) +/- Decrease(increase) in wages payable(0, no information) = Cash paid to employees Step 5: Other operating expenses (-520, the rent and lease payments, including subsidiaries) +/- Increase(decrease) in prepaid expenses(0, no information) +/- Decrease(increase) in accrued liabilities (0, no information) = Cash paid for other operating expenses Step 6: - Cash paid for interest (0, no information) Step 7: -Cash paid for income taxes (-800) = CFO=5000-200-100-1500-520-800=1080

map1, your CFO is not 1880? and this question asks to find the net CF, not only CFO

map1 --per your calculation…it is turning out to be 1880…

OK…U guys are all wrong The correct is D…But I do not the reasoning.

This question is from schwser proctice exam 2 afternoon session #197

map1 Wrote: ------------------------------------------------------- > Step 1: Revenues (5000) > +/- Decrease(increase) in accounts receivables > (-200) > =Cash collected from customers > > Step 2: +Cash investment income (0, no > information) > > Step 3: COGS (-800, the purchases) > +/- Increase(decrease) in inventory (-100) > +/- Decrease(increase) in accounts payable(0, no > information) > =Cash paid to suppliers > > Step 4: Salaries and wages expense(-1500) > +/- Decrease(increase) in wages payable(0, no > information) > = Cash paid to employees > > Step 5: Other operating expenses (-520, the rent > and lease payments, including subsidiaries) > +/- Increase(decrease) in prepaid expenses(0, no > information) > +/- Decrease(increase) in accrued liabilities (0, > no information) > = Cash paid for other operating expenses > > Step 6: - Cash paid for interest (0, no > information) > > Step 7: -Cash paid for income taxes (-800) > > = CFO=5000-200-100-1500-520-800=1080 Be careful, They ask for cash flow…Not just operating cash flow

sales 5000 increase in account receivable 200 increase in inventories 100 salary payment 1500 rent and lease payments transfer to subsidiary for office lease payment 120 payments for purchases 800 proceeds from bank loan 700 equitpment purchase 600 tax payment 800 then projected net cash folwo?= 1080 1380 1480 2080? Answer is: 5000-1500-400-120-800-800= 1380 NI CFO= 1380-200-100=1080 CFI= (600) CFF= 700 = 1180

Right, I calculated CFO and i forgot to deduct the 800 in purchases in the summary line up there, add CFF(700) deduct CFI(600), net 1180