16. () Hoffman Company's net income for the current year was $480,000. Depreciation was $62,000. Accounts receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2,000 and $16,000. Equipment was sold at a gain of $8,000. How much cash was provided by operating activities? A. $536,000. B. $600,000. C. $576,000. D. $476,000.

16. () Hoffman Company's net income for the current year was $480,000. Depreciation was $62,000. Accounts receivable and inventories decreased by $20,000 and $32,000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2,000 and $16,000. Equipment was sold at a gain of $8,000. How much cash was provided by operating activities? A. $536,000. B. $600,000. C. $576,000. D. $476,000.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

See similar textbooks

Similar questions

Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
Metlock, Inc.'s net income for the current year was $432000. Depreciation was $56000. Accounts receivable and inventories decreased by $18000 and $29000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2000 and $14000. Equipment was sold at a gain of $7800. How much cash was provided by operating activities?
Mission Manufacturing’s depreciation expense for the most recent year was $72,000 and its net income was $424,000. The company’s net cash flow from operating activities was $569,600. Other information from Mission’s financial statements includes a decrease in accounts receivable of $24,000, a $27,200 increase in accounts payable, and a $9,600 decrease in prepaid expenses. The only other activity that occurred, for the company this year, was the sale of a piece of equipment whose book value was $16,000. Taking into consideration only the activities listed, what amount will Mission report in cash flows from investing activities? $3,200 cash outflow $28,800 cash inflow $12,800 cash inflow $3,200 cash inflow
During the year, Belyk Paving Company had sales of $2,425,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,335,000, $635,000, and $450,000, respectively. In addition, the company had an interest expense of $275,000 and a tax rate of 25 percent. The company paid out $400,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) Calculate the firm's net new long-term debt added during the year.
Penketh Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging depreciation of £2,500, exceptional expenses of £5,000 and making a profit on the disposal of a machine of £2,000. The balance sheet shows the following changes over the year: Trade receivables: increase by £2,500 Inventories: increase by £2,700Trade payables: decrease by £3,000 What is the net cash from operating activities? a) £25,900 b) £13,200 c) £28,400 d) £18,700
Oak Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging depreciation of £2,500, exceptional expenses of £5,000 and making a profit on the disposal of a machine of £2,000. The balance sheet shows the following changes over the year:Trade receivables: increase by £2,500Inventories: increase by £2,700Trade payables: decrease by £3,000What is the net cash from operating activities?a) £25,900b) £13,200c) £28,400d) £18,700
A company made an operating loss before tax of $80,000 in the year just * 4 points ended. Depreciation charges were $42,000. During the year, the company issued new shares, generating cash proceeds of $150,000. There was a loss on disposals of non-current assets amounting to $26,000. The company had payable balance of $120,000 and $150,000 at the beginning and ending of the year respectively. What is the amount of cash generated from operations?\\nPositive $18,000\\nNegative $42,000\\nPositive $118,000\\nNegative $94,000
South Valley Company’s assets for the current year decreased by P135,000 while its liabilities increased by P25,000. During the year, the owner withdrew P12,000 and made additional investment of P17,000. How much is the net income (loss) for the year?a. (P165,000) c. (P105,000)b. (P115,000 d. (P110,000)
Alberto Co. reported the following for its most recent fiscal year: Net income, - $200,000; Depreciation expense – $50,000; Increase in accounts receivable – $10,000; Decrease in merchandise inventory -$2,000; Increase in prepaid expenses – $1,000; Decrease in accounts payable – $9,000; Increase in wages payable – $3,000; Decrease in bonds payable – $5,000; Loss on sale of machinery – $1,000. What is the net cash flows from Operating Activities?
A company had net income of $225600. Depreciation expense is $20800. During the year, accounts receivable and inventory increased $12000 and $32000, respectively. Prepaid expenses and accounts payable decreased $1600 and $11200, respectively. There was also a loss on the sale of equipment of $13600. How much cash was provided by operating activities?
A company had net income of $180,000. Depreciation expense is $26,000. During the year, Accounts Receivable and Inventory increased $15,000 and $40,000, respectively. Prepaid Expenses and Accounts Payable decreased $2,000 and $4,000, respectively. There was also a loss on the sale of equipment of $3,000. How much cash was provided by operating activities? a. $146,000 b. $152,000 c. $226,000 d. $238,000
The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities? $200,000 $235,000 $220,000 $255,000