Question

ssignments/Assignment202 D 20Fr%20Feb%207%20by%205pm?preview106852794 Page 1 Due Friday, February 7th by 5pm Use the following financial statements to complete questions 1 - 10. 2019 2018 PEL Net Sales 2019 17.000 19,500 7,500 COGS 800 Gross income 250 Balance Sheet Assets Current Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Fixed Assets Net PPRE Goodwill Total Fixed Assets Total Assets 800 350 1,350 2.100 4.600 1,000 1.500 3,550 Depreciation Marketing RAD (350) (1,200) (500) (1.2001 8600 7,500 SG&A EBIT Interest Expense (600 7,200 1,250 13,400 3,650 1.000) 2.650 Net Income 250 Liabilities & Owners' Equity Current abilities Accounts Payable Deferred Revenue Notes Payable Current Portion of LTD Total Current Mobilities Long-Term Debt Owners' Equity Common Shares APIC Retained Earnings Total Owners' Equity 1,000 1,900 7.000 8,000 1.000 4,500 2.200 Total Liabilities and Owners' Eqwy 13.400 11.250 1) What is the Operating Cash Flow (OCF)? DELL

Answer 1

Solution:
Cash Flow from Operating Activities	Year 2019
Net Income	2,650
Adjusted for
Depreciation	350
Provision for taxes	1,000
Change in marketable securities	100
Accounts receivable	(350)
Inventory	(600)
Accounts payable	200
Deferred Revenue	100
notes payable	50
Current portion of ltd	500
Total	1,350
Cash flow from Investing Activities
Purchase of fixed assets	(1,450)
Total	(1,450)
Cash flow from Financing Activities	100
Total	100
Q No. 5	© 2300
Cash Flow to Equity	Net Income-Capital Exp-Change in working capital+net borrowings
	=3650-1450-0+100
	2300
Net income	Income before tax		=2650+1000	3650
Capital Expenditure	Closing balance of fixed Assets-(Opening fixed assets-Depreciation)
	+8600-(7500-350)		1450
Net borrowings	Closing Borrowings-opening Borrowings
	=1000-900		100
Q No 6
Cash flow to Debt Holders	A 600
Interest Expense is the fundamental cash flow from the firm to its debt holders. Moreover, if a firm's Long-term Debt increases from one year to the next then the debt holders supplied the firm with additional cash.
It may be
Cash flow to Debt Holders	Interest paid+ending long term debt+closing long term debt
+600+1000-900	700
Q No 7
Account receivable source or Use of cash between 2018 and 2019
(b) Use of fund 350
Because more amount has been blocked in market in comparesion of previous year
Q No 8	(a) 2300
Because cash flow for equity holders will be distributed among shareholders
Q No 9
Account payable source or Use of cash between 2018 and 2019
(b) Source of fund 200
Because more amount has been hold to pay in comparesion of previous year
Q No 10
External Equity raised	(a) Zero