Total Assets value? Fees Earned$165,000 Cash$30,000Accounts Receivable14,000Selling Expenses44,000Equipment64,000Scott, Capital27,000Accounts Payable12,000Interest Revenue3,000Salaries and Wages Expense 40,000Income Taxes PayableNotes PayablePrepaid Rent2,0005,000Income Taxes Expense 18,00020,000Rent Expense20,000

Fees Earned $165,000 Cash $30,000 Accounts Receivable 14,000 Selling Expenses Scott, Capital 44,000 Equipment Accounts Payable Salaries and Wages Expense 40,000 Income Taxes Payable 64,000 27,000 12,000 Interest Revenue 3,000 Prepaid Rent 2,000 5,000 Income Taxes Expense 18,000 Notes Payable 20,000 Rent Expense 20,000

Fees Earned $165,000 Cash $30,000 Accounts Receivable 14,000 Selling Expenses Scott, Capital 44,000 Equipment Accounts Payable Salaries and Wages Expense 40,000 Income Taxes Payable 64,000 27,000 12,000 Interest Revenue 3,000 Prepaid Rent 2,000 5,000 Income Taxes Expense 18,000 Notes Payable 20,000 Rent Expense 20,000

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 13MCQ

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To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
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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