Question
Balance sheet continued
Income statement continued
This Question: 1 pt 13 of 40 (0 complete) This Test: 40 pts possible Question Help * (Computing free cash flo and income statement, for Abrahams Manufacturing Company to compute the firm's free cash flows and the financing cash flows, and interpret your results. Additional Information 1. The only entry in the accumulated depreciation account is for 2015 depreciation. 2. The firm paid $27,120 in common stock dividends during 2015. ws and financing cash flows) Use the balance sheet, Calculate the free cash flows using the following table. (Round to the nearest dollar. NOTE: Input cash inflows as positive values and cash outflows as negative values) FREE CASH FLOWS After-tax cash flows from operations After-tax cash flows from operations Change in net operating working capital Choose from any list or enter any number in the input fields and then continue to the next question 2 pert Answer can he earch
Explanation / Answer
Cashflow Operation
Cash Flow Finance
Particulars Amount in $ Amount in $ Net profit Before Taxation 59,000 Add:Depreciation 26,000 Interest Expenses 4,000 Dividend Paid 27,120 Les : Tax Paid -18,880 Amount
97,240 Operating Profit before Changes in Working Capital 97,240 Increase in Accounts Receivable -5,300 Decrease in Inventory 8,300 Increase in Accounts Payable 6,000 Decrease in Accrued Liabilities -6,000
Cash Flow Operation 100,240