Tidewater Inc., a retailer, provided the following financial information for its most recentCP 16-3 Communicationfiscal year:$945,0008%Net income...$(1,428,000)$600,000Return on invested capital.......Cash flows from operating activities....Cash flows from investing activities..Cash flows from financing activities....$900,000The company's Cash flows from operating activities section is as follows:..... $ 945,000Net income...210,000Depreciation...(1,134,000)Increase in accounts receivable...(1,260,000)Increase in inventory..(189,000)Decrease in accounts payable.....$(1,428,000)Net cash flow from operating activities...An examination of the financial statements revealed the following additional information:• Revenues increased during the year as a result of an aggressive marketing campaignaimed at increasing the number of new "Tidewater Card" credit card customers. Thisis the company's branded credit card, which can only be used at Tidewater stores. Thecredit card balances are accounts receivable on Tidewater's balance sheet.• Some suppliers have made their merchandise available at a deep discount. As a result,the company purchased large quantities of these goods in an attempt to improve thecompany's profitability.In recent years, the company has struggled to pay its accounts payable on time. Thecompany has improved on this during the past year and is nearly caught up on over-due payables balances.• The company reported net losses in each of the two prior years.Write a brief memo to your instructor evaluating the financial condition ofTidewater Inc.

Financial condition refers to the concept that reflects the capability of a company to raise and…

ater Inc., a re rear: $945,000 8% et income...... turn on invested capital..... $(1,428,000) $600,000 sh flows from operating activities...... sh flows from investing activities.. $900,000 sh flows from financing activities... company's Cash flows from operating activities section is as follows: .... $ 945,000 t income. 210,000

ater Inc., a re rear: $945,000 8% et income...... turn on invested capital..... $(1,428,000) $600,000 sh flows from operating activities...... sh flows from investing activities.. $900,000 sh flows from financing activities... company's Cash flows from operating activities section is as follows: .... $ 945,000 t income. 210,000

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 13.3TIF

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