Q: What is the operating cash flow
A: Operating cash flow is also known as cash flow from operations or Cash flow from operating…
Q: What is the purpose of the statement of cash flows?
A: The internal cash flows the business encounters is not accounted for in the income statement or the…
Q: What are the main differences in the way accounting and finance view cash flows
A: Answer: Accounting and Finance are similar in some lines. Accounting is the measurement of financial…
Q: What are the major sources of cash (inflows) in a statement of cash flows? What are the major uses…
A:
Q: What is the difference between accounting income and cash flow?
A: Basis of accounting: It can be defined as the methodology that is used by the business to record the…
Q: Explain the difference between net cash flow and operating cash flow. What causes these two numbers…
A: Net cash flow is the excess of cash inflows over the cash outflow or it is calculated by deducting…
Q: HOW DID THEY CALCULATE THE FREE CASH FLOW?
A: Free cash flow means the amount of money the company keeps to settle down the creditors, for paying…
Q: How can we determine the Cash Flow Statement with only Operating and Investing Activities?
A: Cash flow statements are the statements that determine the inflow and outflow of cash from three…
Q: what are the elements included in a statement of cash flow?
A: A statement of cash flow is a financial statement of an enterprise that shows the inflows and…
Q: What does the cash ratio help determine, and how is it calculated?
A: Cash ratio is a liquidity ratio that compares the assets of the company with its current…
Q: What is the statement of cash flows, and what are some questions it answers?
A: A cash flow statement is the summary of cash flow which provides the details of the cash and cash…
Q: What kind of information does the statement of cash flows provides?
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: what are the major advantages of the indirect method of reporting cash flow from operating…
A:
Q: What exactly does "cash flows" imply? Explain why the statement of cash flows provides information…
A: Management creates a firm's financial statements to offer the required financial information to…
Q: What is the difference between the direct method and the indirect method of presenting the cash flow…
A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…
Q: Write the Cash Flow Statement with Only Operating and Investing Activities?
A:
Q: What is Calculation of Net Cash Flow? Please provide example.
A: Net Cash Flow: It is the total amount of money created or lost over a particular timeframe, normally…
Q: operating activities
A: Operating activities include sales and changes in working capital. investing activities include…
Q: What is an income statement? Explain the components ( or equation) of the statement of cash flows.
A: Financial statements are those statements and reports which are prepared at the end of accounting…
Q: What does the statement of cash flows report?
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: Of what use is the statement of cash flows?
A:
Q: Explain Cash versus Accrual Accounting.
A: Cash basis accounting: Cash basis accounting is the method of accounting that record revenues only…
Q: Is Cash Flow more valuable than Accrual Income?
A: Under the accrual system of accounting, the transactions are recorded as and when they accrue…
Q: a. What is the net cash provided by operating activities? b. What is the net cash provided by…
A: Cash flows from operating activities, investing activities and financing activities are important…
Q: The primary formula for calculating operating cash flow is?
A: Cash flow from operating activities refers to the amount of cash generated by the operating…
Q: Which of the following is not a purpose of cash flows statement. Select one: O a. They predict net…
A: Cash flow statement is a part of financial statements which shows how did a company used the cash…
Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…
A: In indirect method of cash flow statement we add back amortization expense to net income in…
Q: cash generated from operations usually larger than net profit
A: Cash generated from operations is the amount of cash received in respect of operating activities.
Q: s there any significance that can be attributed to whether net cash flows are generated from…
A: These are shown separately in the cash flow statement of one business.
Q: Explain the purpose of the cash flow statement
A: The cash flow statement is an essential part of the financial statements of the organization. It is…
Q: What are some examples of cash flow from operating activities?
A: Cash Flow Statement is a financial statement that summarizes the inflows and outflows of cash in the…
Q: Why is it necessary to convert profits (as determined in the income Statement) to cash nows?
A: Definition of Profit: Profit is also known as financial gain. It is the difference between revenue…
Q: What is the purpose of a statement of cash flows? How doesit differ from a balance sheet and an…
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: Why do investors find both income statement and statement of cash flows useful?
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: The difference between the sources (in nows) and uses (out nows) of cash represents the net cash…
A: Answer: Cash flow is nothing but the inflows and outflows of the business income. Cash flow is…
Q: What is the principal advantage and the principal disadvantage of the direct method of reporting…
A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…
Q: What are the differences between cash from operating activities, cash from investing activities, and…
A: Cash from operating activities, cash from investing activities, and cash from financing activities…
Q: What does a negative Cash Flow from Assets ( CFFA) indicate?
A: Cash flows are an integral part of any business. To keep operating, businesses require positive cash…
Q: Which of the following is not part of the elements of Cash flow statements? Net change in cash and…
A: Activity based costing (ABC) with the help of cost drivers, allocates the overheads to cost pools…
Q: How much is the net cash flow from operating activities using indirect method?
A:
Q: Why, in most cases, accrual-basis net income provides a better measure of perfomance than net…
A: Under the accrual method of accounting, income is recorded on the income statement when it is…
Q: Which category of the statement of cash flow is considered as the most important? Why?
A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…
Q: Cash-basis accounting produces a measure called net operating cash flow. Describe about the measure.
A: Cash basis accounting: According to cash basis of accounting, revenue should be recognized at the…
Q: How can we Develop Statements of Operating Cash Flow?
A: cashflow statement: It is a financial statement that shows the inflow and outflow of the cash in the…
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- Question 5So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 andinterest expense of $22,300. If the tax rate is 35%, (a) What is the operating cash flow or OCF?(b) Explain why interest paid is not a component of operating cash flow.1. SSSSS’ operating income (EBIT) is P500,000. The company’s tax rate is 40 percent, and its operating cash flow is P450,000. The company’s interest expense is P100,000. What is the company’s net cash flow? (Assume that depreciation is the only non-cash item in the firm’s financial statements.) 2. Calculate a firm's free cash flow if it has net operating profit after taxes of P60,000, depreciation expense of P10,000, net fixed asset investment requirement of P40,000, a net current asset requirement of P30,000 and a tax rate of 30%3. Assume a firm has earnings before depreciation and taxes of $500,000 and no depreciation. It is in a 40 percent tax bracket. a. Compute its cash flow. b. Assume it has $500,000 in depreciation. Recompute its cash flow. C. How large a cash flow benefit did the depreciation provide?
- This was my answer to number 1. Calculate the operating cash flow. OCF=EBIT + Depreciation- Tax Finding EBIT: Revenue – COGS – Operating Expense EBIT = $250,000 - $134,000 - $6,000 EBIT = $110,000 Therefore, OCF= $110,000 + $10,200 - $18,420 OCF= $101,780 Can you explain why you included the depreciation of $10,200 when calculating the EBIT in your answer?1. SSSSS’ operating income (EBIT) is P500,000. The company’s tax rate is 40 percent, and its operating cash flow is P450,000. The company’s interest expense is P100,000. What is the company’s net cash flow? (Assume that depreciation is the only non-cash item in the firm’s financial statements.) 2. An analyst has collected the following information regarding YYYYY: Earnings before interest and taxes (EBIT) = P700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow? 3. At the beginning of the year, KKKKK had P100,000 in cash. The company undertook a major expansion during this same year. Looking at its statement of cash flows, you see that the net cash provided by its operations was P300,000 and the company’s investing activities required cash expenditures of…Problem 9-06 Assume Lasher’s Kitchen has pretax earnings of $150,000 after depreciation expense of $30,000. If the firm’s tax rate is 35 percent, what is its cash flow from operations? Round your answer to the nearest dollar.
- 16. The following financial information was provided by Anya Company: Net Income 8,255,000.00 NOPAT 75,785,000.00 EBITDA 143,000,000.00 Net Profit Margin 6.00% Operating capital 425,070,000.00 After tax cost of capital 12.00% Tax rate 35.00% Assuming the Company has no amortization expense, how much is its depreciation expense? Use 2 decimal places in your final answerQuestion 4: XYZ Co. had the following information in 2020: Sales 150000 COGS 80000 Operating expenses (excluding depreciation) 32000 Interest expense 8000 Taxes 3000 Increase in Accounts receivable 7000 Decrease in inventory 4000 Increase in Accounts payable 5000 Decrease in other payables 3500 Increase in interest payable 2000 Decrease in tax payable 1000 Prepare operating cash flows using direct method.4. The Moon Company has total operating income of AED 30 million. The depreciation expense was AED 3 million and dividends were paid in the amount of AED 6 million, accounts payables decreased by AED 4 million, accounts receivables decreased by AED 9 million, inventory decreased by AED 16 million, interest expenses AED 2 million and tax rate 30%. What was the net cash flow from operating activities?
- b) The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is $200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company’s net income? What is its net cash flow?Free Inc. has after tax operating income of $100 million. It is depreciation is $20million. The capital expenditure is $50million. Its NWC increase for $30 million, the excess cash increases for $5 million, and note payable decreases $1 million. What is the firm's free cash flow during the fiscal year in consideration (in million)? a)45 b)44 c)46 d)484. Assume a firm has earnings before depreciation and taxes of $400,000 and depreciation of $100,000. a. If the firm is in a 35 percent tax bracket, compute its cash flow. b. If it is in a 20 percent tax bracket, compute its cash flow.