Question

Help with the red

Statement of For the 20227 Incintory DOBA D incolati 26200 NEC PO By Courting Activity 1 123200 Cash Flows from investing Activiti Sant C somag Activ DOBU U Raumption of Bod of common stock Punt of wind C ong Activity 102400 in C at Brown of Prod C LINK TO TEXT Co c ow Show am gative 1500

Answer 1

1^st red:

The correct one is $20,800.

Depreciation - Increase in AR – Increase in Inventory + Increase in AP – Decrease in TP = 56,000 – 19,200 – 25,600 + 12,800 – 3,200 = 20,800

2^nd red:

FCF = Cash flow from operating activities – Capital expenditures (part of investing activities)

        = 123,200 – 0

        = 123,200 (Answer)

Note: there is only a sale in investing activity but no purchase (known as capital expenditure); therefore, the amount becomes 0.