Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Chapter 6, Problem 5P
Kendall Corners Inc. recently reported net income of $3.1 million and
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Kendall Corners Inc. recently reported net income of $4.6 million and depreciation of $500,000. What was its net cash flow? Assume it had no amortization expense. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round you answer to the nearest dollar.
JBS Inc. recently reported net income of $4,650 and depreciation of $855. How much was its net cash flow, assuming it had no amortization expense and sold none of its fixed assets?
Group of answer choices
$5,786.75
$5,223.25
$5,505.00
$4,955.59
$4,701.31
Alpha Computers reports net income of $45 million. Included in that number is depreciation expense of $8 million, and a loss on the
sale of land of $1 million. Records reveal decreases in Accounts Receivable, Inventory, and Accounts Payable of $5 million, $3 million,
and $1 million, respectively.
Calculate Alpha Computers' net cash flows from operating activities using the indirect method. (Negative value should be indicated
by minus sign. Enter your answer in millions.)
Net cash flows from operating activities
million
Chapter 6 Solutions
Intermediate Financial Management
Ch. 6 - Prob. 1QCh. 6 - If a “typical” firm reports $20 million of...Ch. 6 - Prob. 3QCh. 6 - What is operating capital, and why is it...Ch. 6 - Explain the difference between NOPAT and net...Ch. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3P
Ch. 6 - Prob. 4PCh. 6 - Kendall Corners Inc. recently reported net income...Ch. 6 - In its most recent financial statements,...Ch. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 18PCh. 6 - What effect did the expansion have on sales and...Ch. 6 - Prob. 2MCCh. 6 - Prob. 3MCCh. 6 - Prob. 4MCCh. 6 - What is Computron’s free cash flow (FCF)? What are...Ch. 6 - Calculate Computron’s return on invested capital...Ch. 6 - Cochran also has asked you to estimate Computrons...Ch. 6 - Prob. 8MC
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- Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities:…arrow_forwardChic Chalk company has charged a depreciation of $500,120 for one of its equipment, on its income statement. The company is planning for an increase in this depreciation. On the financial statements of Chic Chalk this will a. Decrease net cash flow from operations on the cash flow statement. b. Not impact the cash flow statement c. Increase in net cash flow from operations on the cash flow statement. d. No impact the Income statementarrow_forwardCalculate the operating cash flow for Initech. (Assume that depreciation is tax deductible.) Initech Corp. Income Statement ($000's) Revenue Cost of Goods Sold SG&A Depreciation Expense. EBIT Interest Expense Income Before Taxes Taxes Net Income: $100,000 64,798 16,202 4,739 14,260 7,230 7,030 2,108 $4,922arrow_forward
- Sunset Acres reported net income of $58.0 million. Included in that number were trademark amortization expense of $2.7 million and gain on the sale of land of $1.4 million. Records reveal decreases in accounts receivable, accounts payable, and inventory of $1.6 million, $2.6 million, and $3.6 million, respectively. Required: What were Sunset's cash flows from operating activities? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) ($ in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activitiesarrow_forwardWildhorse Company reported a loss of $1586 for the sale of equipment for cash. The equipment had a cost of $39040 and accumulated depreciation of $35990. How much will Wildhorse report in the cash flows from investing activities section of its statement of cash flows?arrow_forwardReno Company's net income of $30,000 includes a charge for depreciation expense of $20,000. Its estimated net annual cash flow would be OA) $10,000 B) $12,500 OC) $25,000 D) $50,000 E) none of the abovearrow_forward
- (a) The entity sold some tangible non-current assets, which had a net book value of $200 million. The cost of sales figure includes a loss of $10 million on this disposal. (b) Cost of sales is arrived at after charging depreciation on the tangible non-current assets of $42 million. (c) Dividends paid during the year were $55,000. Find cashflow from investing activitiesarrow_forwardAbiss company has erroneously skipped recording depreciation on one of its equipment amounting to $25,000, in its income statement. The company is planning for an increase in this depreciation. On the financial statements of Abiss this wil . a. Decrease net cash flow from operations on the cash flow statement. b. Not impact the cash flow statement c. Increase in net cash flow from operations on the cash flow statement d. No impact the Income statementarrow_forwardG company has an increase in its net fixed assets of $800. Depreciation = $140. How much did the company spend on net fixed assets? A source or use of cash? $800, source $800, use $940, source $940, usearrow_forward
- (c) Martinez, Inc. reported net income of Tk. 2.5 million in 2010. Depreciation for the year was Tk. 160,000, accounts receivable decreased Tk. 350,000, and accounts payable decreased Tk. 280,000. Compute net cash provided by operating activities using the indirect method. For 2010 depreciation on plant assets was Tk. 70,000, and the company incurred a loss on sale of plant assets of Tk. 12,000. Compute net cash provided by operating activities under the indirect method.arrow_forwardUse the information provided below to prepare the Cash Flow Statement of Chelsea Limited for the year ended 31 December 2021 using the answer template provided (see images) Additional information: (See images)¦ Selling and administrative expenses include depreciation as follows:Depreciation on buildings R96 000Depreciation on plant and machinery R160 000¦ There were purchases but no disposals of property, plant and equipment for the financial year ended 31 December2021.¦ Total dividends for the year ended 31 December 2021 and 31 December 2020 amounted toR288 000 and R388 000 respectively.¦ Inventories on 31 December 2019 amounted to R560 000.¦ All purchases and sales of inventories were on credit.¦ The number of shares in issue was 400 000.¦ Credit terms from creditors are 90 days.arrow_forwardAbiss company has erroneously skipped recording depreciation on one of its equipment amounting to $25,000, in its income statement. The company is planning for an increase in this depreciation. On the financial statements of Abiss this will Decrease net cash flow from operations on the cash flow statement. b. Not impact the cash flow statement c. Increase in net cash flow from operations on the cash flow statement d. No impact the Income statementarrow_forward
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