Exercise 5 Use the following information to answer the questions that follow: M& M Foods 2011 $5,831 $6,423 3,670 2010 Sales COGS 4,109 Interest 291 280 Depreciation 125 122 Cash 250 313 Accounts receivables 1,092 1,162 Current liabilities 717 Inventory Long-term debt Net fixed assets 1,051 1,521 1,100 1,495 2,400 4,006 4,123 Common stock 1,900 2,100 Тахеes 590 670 Required: a. What is the cash flow from assets for 2011? b. Based on your answer in part (a) above, evaluate the cash management.

Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Current Liabilities And Payroll
Section: Chapter Questions
Problem 10.5CP
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Exercise 5
Use the following information to answer the questions that follow:
M& M Foods
2010
2011
$5,831 $6,423
3,670
Sales
COGS
4,109
Interest
291
280
Depreciation
125
122
Cash
250
313
Accounts receivables
1,092
1,162
Current liabilities
717
1,051
1,521
1,100
4,123
2,100
Inventory
1,495
2,400
4,006
1,900
Long-term debt
Net fixed assets
Common stock
Тахes
590
670
Required:
a. What is the cash flow from assets for 2011?
b. Based on your answer in part (a) above, evaluate the cash management.
Transcribed Image Text:Exercise 5 Use the following information to answer the questions that follow: M& M Foods 2010 2011 $5,831 $6,423 3,670 Sales COGS 4,109 Interest 291 280 Depreciation 125 122 Cash 250 313 Accounts receivables 1,092 1,162 Current liabilities 717 1,051 1,521 1,100 4,123 2,100 Inventory 1,495 2,400 4,006 1,900 Long-term debt Net fixed assets Common stock Тахes 590 670 Required: a. What is the cash flow from assets for 2011? b. Based on your answer in part (a) above, evaluate the cash management.
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