CORPORATE FINANCE>CUSTOM<
11th Edition
ISBN: 9781308755465
Author: Ross
Publisher: MCG/CREATE
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Question
Chapter 2, Problem 10QP
Summary Introduction
To calculate: The operating cash flow of Company J for the year 2015.
Introduction:
Operating cash flow refers to the cash flow derived from operating activities or primary activities of the firm.
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Students have asked these similar questions
Hampton Industries had $50,000 in cash at year-end 2015 and $14,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $280,000. Cash flow from financing activities totaled +$210,000. Round your answers to the nearest dollar, if necessary.
What was the cash flow from operating activities? Enter cash outflows with a minus sign.$
If accruals increased by $45,000, receivables and inventories increased by $185,000, and depreciation and amortization totaled $61,000, what was the firm's net income?
Observe the following statement:
STATEMENT OF CASH FLOW FOR “COUCH POTATO TECHNOLOGIES P/L”
For the year ending June 30 2011
2010
$000
2011
$000
Receipts from customers (sales)
350
180
Payments for purchases
50
60
Payments to employees
80
80
Purchase of assets
10
20
Payments for operating expenses
10
15
Additional Information:
• Industry Average Efficiency : 20%
• Net profit in 2010 : $21 000
a) Define the term working capital.
b) Comment on the cash flow of Couch Potato Technologies P/L in 2010.
c) Calculate and comment on the efficiency of Couch Potato Technologies P/L
d) Calculate and comment on the net profit of Couch Potato Technologies P/L.
e) Recommend TWO strategies that can be used to manage the working capital of Couch Potato Technologies P/L.
Andrew Potter is comparing the cash- flow- generating ability of Microsoft with that of Apple Inc. He collects information from the companies’ annual reports and prepares the following table.
Cash Flow from Operating Activities
as a Percentage of Total Net Revenue
2017 (%) 2016 (%) 2015 (%)
Microsoft 43.9 39.1 31.7
Apple Inc. 27.7 30.5 34.8
As a Percentage of Average Total Assets
2017 (%) 2016 (%) 2015 (%)
Microsoft 18.2 18.1 17.1
Apple Inc. 18.2 21.5 31.1
What is Potter likely to conclude about the relative cash- flow- generating ability of these two companies?
Chapter 2 Solutions
CORPORATE FINANCE>CUSTOM<
Ch. 2 - Prob. 1CQCh. 2 - Prob. 2CQCh. 2 - Prob. 3CQCh. 2 - Prob. 4CQCh. 2 - Prob. 5CQCh. 2 - Cash Flow from Assets Why is it not necessarily...Ch. 2 - Operating Cash flow Why is it not necessarily bad...Ch. 2 - Net Working Capital and Capital Spending Could a...Ch. 2 - Cash Flow to Stockholders and Creditors Could a...Ch. 2 - Prob. 10CQ
Ch. 2 - Building a Balance Sheet Sankey, Inc., has current...Ch. 2 - Building an Income Statement Shellon, Inc., has...Ch. 2 - Market Values and Book Values Klingon Cruisers,...Ch. 2 - Prob. 4QPCh. 2 - Calculating OCF Barrell, Inc., has sales of...Ch. 2 - Calculating Net Capital Spending Gordon Driving...Ch. 2 - Building a Balance Sheet The following table...Ch. 2 - Cash Flow to Creditors The 2014 balance sheet of...Ch. 2 - Cash. Flow to Stockholders The 2014 balance sheet...Ch. 2 - Prob. 10QPCh. 2 - Cash Flows Ritter Corporations accountants...Ch. 2 - Financial Cash flows The Stancil Corporation...Ch. 2 - Building an Income Statement During the year, the...Ch. 2 - Calculating total Cash Flows Schwert Corp. shows...Ch. 2 - Using Income Statements Given the .following...Ch. 2 - Prob. 16QPCh. 2 - Marginal versus Average Tax Rates (Refer to Table...Ch. 2 - Prob. 18QPCh. 2 - Accounting Values versus Cash Flows In Problem 18,...Ch. 2 - Calculating Cash Flows Cusic Industries had the...Ch. 2 - Prob. 21QPCh. 2 - Use the following information for Ingersoll, Inc.,...Ch. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Net Fixed Assets and Depreciation On the balance...Ch. 2 - Prob. 26QPCh. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MC
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