Question

QUESTION 2

  1. Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars.

     (unit: $ in millions)

    Southeast Systems

    Balance Sheets

     

    2013

    2014

     

    2013

    2014

    Cash

    $50

    $100

    Accounts payable

    $450

    $500

    Accounts receivable

    600

    700

    Notes payable

    300

    400

    Inventory

    500

    550

    Long-term debt

    650

    650

    Net fixed assets

    1,000

    1,000

    Common equity

    300

    300

     

     

     

    Retained earnings

    450

    500

    Total Assets

    $2,150

    $2,350

    Total Liabilities & Owner’s Equity

    $2,150

    $2,350

     

    Income Statement

     

    2014

    Sales

    $2,370

    Cost of goods sold

    2,070

    Depreciation

    200

    EBIT

    100

    Interest expenses

    20

    Taxable income

    80

    Taxes

    28

    Net income

    $52

    Dividends

    $2

     

    (1) What is the net cash flow from financing activity for 2014?

    (2) What is the total net increase in cash from 2013 to 2014?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Cash Flow Statements

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: An audit team most likely would assess control risk at the maximum if the payroll department supervi...

A: An audit team most likely would assess control risk at the maximum if the payroll department supervi...

Q: On January 1, 2020, Kingbird, Inc. purchased 11% bonds having a maturity value of $541,000 for $558,...

A: The following journal entries are passed to show the investment in bonds.

Q: (Learning Objective 3: Adjust the accounts for depreciation) Suppose that on January 1Sunbeam Travel...

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life o...

Q: On January 1, 2015, Buchheit Enterprises reported $95,000 in a liability called “Bonds Payable,Net.”...

A: We have the following information:  Reported $95,000 as Bonds Payable in Liability section of balan...

Q: How do the accounting methods used for investmentsinvolving a significant influence and investments ...

A: Concept: The rules and regulations under which the company maintains its revenue and expenses are ca...

Q: During February, $76,890 was paid to creditors on account, and purchases on account were $98,420. As...

A: The term creditors on account referred to the accounts payable of the company.  Payment to creditors...

Q: Dungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43 million an...

A: Current Ratio is the ratio of current assets and current liabilities of the firm. It measures liquid...

Q: What accounts are affected by closing entries? What accounts are not affected?

A: Closing entries are done at the end of accounting period to close all the temporary accounts and tra...

Q: The stockholders’ equity accounts of Sheridan Company have the following balances on December 31, 20...

A: The stock dividend is a method of capitalizing the retained earning.on the other hand a stock split ...