Reading 34: Understanding the Cash Flow Statement - LOS f,

答案和详解如下：

29.An analyst has gathered the following information about a company:

Note: the dividend payout ratio equals 20 percent.

What is the net increase or decrease in cash?

A)   +$15.

B)   +$43.

C)   -$43.

D)   -$15.

The correct answer was D)

There are two ways to approach this problem. The easier way is to just take the difference in cash from the two years: $35 - $50 = -$15.

The harder way is to create a statement of cash flows:

CFO = Net Income (44) + (Depreciation) (10) – (increase in Accounts Receivable) (20) + (decrease in Inventory) (5) – (decrease in Accounts Payable) (25) – (decrease in Wages Payable) (5) = $9.

CFI = $25 (fixed assets decreased by $25 representing a source of cash)

CFF = Dividends paid ((.20)*(44)) = -9 – (decrease in bonds) (10) - (decrease in common stock) (30) = -$49.

The net change in cash = 9 + 25 – 49 = -$15, or a decrease of $15.

30.A firm has net cash sales of $3,500, earnings after taxes (EAT) of $1,000, depreciation expense of $500, cost of goods sold (COGS) of $1,500, and cash taxes of $500. Also, inventory decreased by $100, and accounts receivable increased by $300. What is the firm's cash flow from operations?

A)   $1,200.

B)   $1,800.

C)   $2,000.

D)   $1,300.

The correct answer was D)