Connect Access Card for Financial Accounting: Information and Decisions
Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 12, Problem 10E
Summary Introduction

Introduction: Cash flow on total assets ratio is the ratio defining the liquidity of the organization.

To Determine:Cash flow on total assets ratio for both years and comment on the results and any change in the performance.

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Cash flow from assets. Use the data from the following financial statements in tthe popup window, The company paid interest expense of $18,000 for 2017 and had an overall tax rate of 40% for 2017. Find the cash flow from assets for 2017, and break it into its three parts operating cash flow, capital spending, and change in net working capital The operating cash flow is $ (Round to the nearest dollar) O Data Table - X Partial income Statement Year Ending 2017 Sales revenue $350,000 Cost of goods sold $140,000 Foxed costs $43,000 Sellng general, and administratve expenses $28.000 Depreciation $46,000
Analyzing Cash Flow Ratios Meagan Enterprises reported the following information for the past year of operations:For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect. Transaction FreeCash Flow$400,000 Operating-Cash-Flow-to-Current Liabilities Ratio1.1 times Operating-Cash-Flow-to-Capital Expenditures Ratio5.0 times a. Recorded credit sales of $17,000       b. Collected $6,000 owed from customers       c. Purchased $50,000 of equipment on long-term credit       d. Purchased $70,000 of equipment for cash       e. Paid $17,000 of wages with cash       f. Recorded utility bill of $14,750 that has not been paid
The following is the comparative balance sheet of Manish Ltd. Prepare a Cash Flow Statement for the year ended 31 December, 2016 from the details given below: Liabilities Assets 31st Dec., 31st Dec., 2015 31st Dec., 31st Dec., 2015 2016 2016 Share Capital Reserves & Surplus 30,000 755,000 Long-term loans Current Liabilities 740,000 40,000 Fixed assets 760,000 792,500 Depreciation 17,500 727,500 Inventory Accounts 720,000 730,000 715,000 26,000 740,000 735,000 20,000 734,000 Receivable Dividend Provision 25,000 71,05,000 1,59,000 The Income statement for Manish Ltd. for the year ended 31 78,000 1,05,000 1,59,000 Cash 72,500 December 2015 shows the following information: Sales Cost of Sales Tax provisions Dividend provided Amount() 1,45,000 99,000 12,500 8,000

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Connect Access Card for Financial Accounting: Information and Decisions

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