QUESTION 3Based on the following information,Cash collections from customers$1,026Purchase of bond investment296Depreciation expenseSale of used equipmentDividends received9350297Treasury stock purchasedThe cash flows from investing activities under GAAP are $420If your cash flow is negative, answer with a- sign in front.Example negative cash of S1000, would be answered -1,000

Name: QUESTION 3Based on the following information,Cash collections from cu
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Description: QUESTION 3Based on the following information,Cash collections from customers$1,026Purchase of bond investment296Depreciation expenseSale of used equipmentDividends received9350297Treasury stock purchasedThe cash flows from investing activities under

Solution: Cash flow from investing activities under GAAP = Sale of used equipment - Purchase of bond…

Business

Accounting

Based on the following information, Cash collections from customers $1,026 Purchase of bond investment 296 Depreciation expense Sale of used equipment 93 502 Dividends received 97 420 Treasury stock purchased The cash flows from investing activities under GAAP are $ If your cash flow is negative, answer with a Example negative cash of $1000, would be answered -1,000 sign in front.

Based on the following information, Cash collections from customers $1,026 Purchase of bond investment 296 Depreciation expense Sale of used equipment 93 502 Dividends received 97 420 Treasury stock purchased The cash flows from investing activities under GAAP are $ If your cash flow is negative, answer with a Example negative cash of $1000, would be answered -1,000 sign in front.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 56PSA: Preparing a Statement of Cash Flows Monon Cable Television Company reported the following financial...

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FREE CASH FLOW Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2018 2017 Assets Cash and equivalents 15,000 14,000 Accounts receivable 35,000 30,000 Inventories 33,320 27,000 Total current assets 83,320 71,000 Net plant and equipment 48,000 46,000 Total assets 131,320 117,000 Liabilities and Equity Accounts payable 10,100 9,000 Accruals 8,000 6,000 Notes payable 7,000 5,050 Total current liabilities 25,100 20,050 Long term bonds 20,000 20,000 Total liabilities 45,100 40,050 Common stock(4,000 shares) 40,000 40,000 Retained earnings 46,220 36,950 Common equity 86,220 76,950 Total liabilities and equity 131,320 117,000 Income Statement for Year Ending December 31, 2018 Sales 210,000 Operating cost excluding depreciation and amortization 160,00 EBITDA 50,000 Depreciation and amortization 6000 EBIT 44,000 interest 5,350 EBT 5,38,650 Taxes (40%) 15,460 Net income 23,190 Dividends paid 13,920 a. What was net operating working capital for 2017 and 2018? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. b. What was .Arlingtons 2018 free cash flow? c. Construct Arlingtons 2018 statement of stockholders equity. d. What was Arlingtons 2018 EVA? Assume that its after tax cost of capital is 10%. e. What was Arlingtons MVA at year-end 2018? Assume that its stock price at December 31, 2018? Was 25.
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