Business Analysis for Investment (FNCE2003) Tutorial 4R

Business Analysis for Investment (FNCE2003)
Tutorial 4
Understanding Balance Sheet and Cash Flow StatementsQuestion 1: Assuming U.S. GAAP, use the following data to answer the questions:Net Income$45Depreciation75Taxes paid25Interest paid5Dividends paid10Cash received from sale of company building40Issuance of preferred stock35Repurchase of common stock30Purchase of machinery20Issuance of bonds50Debt retired through issuance of common stock45Paid off long-term bank borrowing15Profit on sale of building20a. What is the cash flow from operation?b. What is the cash flow from investment activities?C. What is the cash flow from financing activities?Question 2:Below is the income statement data of Jones Inc.Sales$1500Increase in inventory100Depreciation150Increase in accounts receivable50Decrease in accounts payable70After tax profit margin25%Gain on sale of machinery$30Based on the above information, what is the Cash flow from operation for Jones Inc.?Question 3:Adelaide Brighton Company recorded the following in Year 2015:Proceeds from issuance of long-term debt$300,000Purchase of equipment $200,000Payment for inventory$50,000Loss on sale of equipment $70,000Stock repurchase$9,000Proceeds from sale of equipment $220,000Equity in earnings of affiliate$10,000On the Year 2015 statement of cash flows, what the company would report as net cash flow from investing activities?Question 4:Green Flag., a retailer of floral products, reported cost of goods sold for the year of $85 million. Total assets increased代 写Business Analysis for Investment (FNCE2003) Tutorial 4R by$35 million, but inventory declined by $7 million. Total liabilities increased by$40 million, and accounts payable increased by 8 million. What is the amount of cash paid by the company to its suppliers?Question 5:Following are the information gathered from a company’s 2010 financial statements (in millions):Year ended 31 December20092010Net sales265.4277.4Cost of goods sold168.3187.9Accounts receivable77.868.8Inventory37.447.8Accounts payable28.332.9Property and equipment185.5195.6Based only on the information above, what would the company’s 2010 statement of cash flows in the direct format include amounts (in $millions) for cash received from customers and cash paid to suppliers?Question 6:Blue Bayou, an advertising company, reported revenues of$80 million, total expenses of $35 million, cash and marketable securities$2million and net income of $15 million in the most recent year. If accounts receivable decreased by$22 million and accounts payable increase by 8 million, how much cash did the company receive from customers?Question 7:Blue Beverages Plc., a manufacturer of tropical drinks, reported cost of goods sold for the year of $120 million. Total assets increased by$55 million, accounts receivable increase by $120 million but inventory declined by$25 million. Total liabilities increased by $45 million, but accounts payable decreased by$5 million. How much cash did the company pay to its suppliers during the year?Question 8: Discussion on chapter-end MCQs




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