Net cash from operating activity? Net cash from investing activity? Net cash fro
ID: 2402619 • Letter: N
Question
Net cash from operating activity? Net cash from investing activity? Net cash from financing activity? The total change in Cash flow was? Free cash flow for 2010?change in net working capital from 2009 to 2010? % Cut Clipboard Font Paragraph Left: 16:37:46 Kristina Taylor: Attempt 2 , Inc. INCONE STATDGNTS (dates 12/31/xx) 2010 $3, 600 $3,000 2,550 75 $375 60 $315 126 Operating costs (excluding depreciation)3,060 Depreciation EBIT Intezest $450 65 Earnings before taxes Taxes (40%) Net income available to common stockholders$231 Common Stock Dividends Paid $181 $14 XZ, Inc. BALANCE SHEETS (dates 12/31/xx)2010 Cash and marketable securities $36 540 Accounts receirable Inventories $1,116 Total cuzrent assets Net fixed assets Zotal assets 900 52,086 6,830 Accounta payable Notes payable 324 Accrual 216 Total eurzent liabilities tong-serm bonds Zotal debt common atock 150 nillion eharesj Retained earnings total 15abilfties and equi 150 ge 1 of 1 0 wordsExplanation / Answer
Answer-1:
XYZ Inc.
Cash Flow Statement for the Year 2010
Cash Flow from Operating Activities
Net Profit before tax
385
Adjustments for non-cash and non-operating expense
- Depreciation
90
- Interest
65
Adjustments for change in working capital
- Increase in accounts receivables
-90
- Decrease in inventories
60
- Increase in accounts payable
54
- Increase in notes payable
46
- Increase in accruals
36
Cash flow from operating activities
646
Less: income tax paid
-154
Net cash flow from operating activities
492
Cash Flow from Investing Activities
Purchase of fixed assets
-240
Net cash used in investing activities
-240
Cash Flow from Financing Activities
Dividend Paid
-181
Interest Paid
-65
Net cash used in financing activities
-246
Net change in cash and cash equivalent
6
Cash and cash equivalent at the beginning of the year
30
Cash and cash equivalent at the end of the year
36
Note: Net fixed assets at the end of 2009 was $ 750 and 2010 $ 900. Depreciation charged is $ 90. It means total assets purchased during the year is (900+90) – 750 = $ 240
Answer-2:
Working Capital = Current Assets – Current Liabilities
2009 = 1080 – 605 = $ 475
2010 = 1116 – 741 = $ 375
Change in Net working Capital = 475 – 375 = $ 100
XYZ Inc.
Cash Flow Statement for the Year 2010
Cash Flow from Operating Activities
Net Profit before tax
385
Adjustments for non-cash and non-operating expense
- Depreciation
90
- Interest
65
Adjustments for change in working capital
- Increase in accounts receivables
-90
- Decrease in inventories
60
- Increase in accounts payable
54
- Increase in notes payable
46
- Increase in accruals
36
Cash flow from operating activities
646
Less: income tax paid
-154
Net cash flow from operating activities
492
Cash Flow from Investing Activities
Purchase of fixed assets
-240
Net cash used in investing activities
-240
Cash Flow from Financing Activities
Dividend Paid
-181
Interest Paid
-65
Net cash used in financing activities
-246
Net change in cash and cash equivalent
6
Cash and cash equivalent at the beginning of the year
30
Cash and cash equivalent at the end of the year
36