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A manufacturing firm is considering the following mutually exclusive alternatives:
Determine which project is a better choice at MARR = 15% on the basis of the
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- Year Net cashflows 0 -575,000 1 £125,000 2 £248,000 3 £176,000 4 £146,000Initial Outlay Cash Flow in Period CFo CF₁ CF2 -20,000 7,730.85 The IRR is approximately: O 18%. O 20%. O 16%. O 14%. 7,730.85 CF3 7,730.85 CF4 7,730.85CP 4 Year Cash Flow 0 -$200,000 1 50,000 2 100,000 3 150,000 4 40,000 5 25,000 Calculate Payback
- Q1: Statement of cash flows (direct and indirect methods). Hartman, Inc. has prepared the following comparative statement of financial position for 2018 and 2019: 2019 2018 Plant assets €1,260,000 €1,050,000 Accumulated depreciation (450,000) (375,000) Patent 153,000 174,000 Prepaid expenses 18,000 27,000 Inventory 150,000 180,000 Receivables 159,000 117,000 Cash 297,000…statement of cash flow 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Cash flows from operating activities Profit before income tax 32,548 35,430 11,576 Adjustments for: - Depreciation 56,108 58,326 54,759 - Amortisation 1,185 971 563 - Loss/(profit) on disposal of property, plant and equipment 2,242 (9) (566) - Impairment charge 1,110 534 43 - Finance cost 19,579 19,392 30,724 - Finance income (2,245)…statement of cash flow 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Cash flows from operating activities Profit before income tax 32,548 35,430 11,576 Adjustments for: - Depreciation 56,108 58,326 54,759 - Amortisation 1,185 971 563 - Loss/(profit) on disposal of property, plant and equipment 2,242 (9) (566) - Impairment charge 1,110 534 43 - Finance cost 19,579 19,392 30,724 - Finance income (2,245)…
- Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000 You are required to:iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWCQuestion 1 Consider the following financial information and answer the questionsthat follow:Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000You are required to:i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iii) Calculate the cash flow to shareholders iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC Question 2 The following financial information is available for Hero Sports Ltd.:Sales : $45,000Costs : $25,000Addition to retained earnings : $5,500Dividends paid : $900Interest expense : $1,450Tax rate : 40%Compute the depreciation expense. Question 3 Use the following information to answer the question that follow:Net Income : $205,000Profit margin : 7.80%A/R : $151,642Credit sales :…Given, Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000 i) Calculate the operating cash flow ii) Calculate the cash flow to creditors
- G. Prepare a statement of cash flow on both direct and indirect method 2019 2018 Assets: Cash 140,000 60,000 Accounts receivable, net 84,000 70,000 Allowance for doutful accounts (7,000) (5,000) Inventory 55,000 50,000 Prepaid expenses 22,000 20,000 Investments 70,000 20,000 Property, plant & equipment 660,000 500,000 Accumulated depreciation -100,000 -60,000 Patents 16,000 20,000 Total Assets 940,000 675,000 Liabilities & Equity Accounts payable 30,000…Question 2 During 2021 equipment was sold for $72,000. This equipment cost $104,000 and had a book value of $68,000. Accumulated depreciation for equipment was $323,400 at 12/31/20 and $304,800 at 12/31/21.Complete the cash flow statement below:A company reported the following information: 2020 2019 Accounts receivable $50,000 $65,000 Inventories 43,000 40,000 Accounts payable 29,000 39,000 Net income 100,000 Depreciation expense 11,000 If the indirect method is used to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2020? a.$92,000 b.$109,000 c.$111,000 d.$113,000
