Q16. An analyst has gathered the following information about a company:
Income Statement for the Year 2004 | |||||||
| |||||||
Sales | | $1,500 | |||||
Expenses | | | |||||
| COGS | $1,300 | | ||||
| Depreciation | 30 | | ||||
| Int. Expenses | 40 | | ||||
| | Total expenses | | 1,370 | |||
Income from cont. op. | | 130 | |||||
| | Gain on sale | | 30 | |||
Income before tax | | 160 | |||||
Income tax | | 64 | |||||
Net Income | | $96 | |||||
Additional Information: | |
Dividends paid | $30 |
Common stock sold | 20 |
Equipment purchased | 50 |
Bonds issued | 80 |
Fixed asset sold for (original cost of $100 with accumulated depreciation of $70) | 60 |
Accounts receivable decreased by | 30 |
Inventory decreased by | 20 |
Accounts payable increased by | 20 |
Wages payable decreased by | 10 |
What is the cash flow from operations?
A) $156.
B) $170.
C) $135.
Q17. The Beeline Company has the following balance sheet and income statement.
Beeline Company Balance Sheet | |||||||
As of December 31, 2004 | |||||||
| |||||||
| 2003 | 2004 | | | 2003 | 2004 | |
Cash | $50 | $60 | | Accounts payable | $100 | $150 | |
Accounts receivable | 100 | 110 | | Long-term debt | 400 | 300 | |
Inventory | 200 | 180 | | Common stock | 50 | 50 | |
| | | | Retained earnings | 400 | 500 | |
Fixed assets (gross) | 800 | 900 | | Total liabilities and equity | $950 | $1,000 | |
Less: Accumulated depreciation | 200 | 250 | | | | | |
Fixed assets (net) | 600 | 650 | | | | | |
Total assets | $950 | $1,000 | | | | | |
Beeline Company Income Statement | |||||||
For year ended December 31, 2004 | |||||||
| |||||||
Sales | $1,000 | ||||||
Less: | | ||||||
COGS | 600 | ||||||
Depreciation | 50 | ||||||
Selling, general, and administrative expenses | 160 | ||||||
Interest expense | 23 | ||||||
Income before taxes | $167 | ||||||
Less tax | 67 | ||||||
Net income | $100 | ||||||
The cash flow from operations for 2004 is:
A) $210.
B) $260.
C) $150.
答案和详解如下：
Q16. An analyst has gathered the following information about a company:
Income Statement for the Year 2004 | |||||||
| |||||||
Sales | | $1,500 | |||||
Expenses | | | |||||
| COGS | $1,300 | | ||||
| Depreciation | 30 | | ||||
| Int. Expenses | 40 | | ||||
| | Total expenses | | 1,370 | |||
Income from cont. op. | | 130 | |||||
| | Gain on sale | | 30 | |||
Income before tax | | 160 | |||||
Income tax | | 64 | |||||
Net Income | | $96 | |||||
Additional Information: | |
Dividends paid | $30 |
Common stock sold | 20 |
Equipment purchased | 50 |
Bonds issued | 80 |
Fixed asset sold for (original cost of $100 with accumulated depreciation of $70) | 60 |
Accounts receivable decreased by | 30 |
Inventory decreased by | 20 |
Accounts payable increased by | 20 |
Wages payable decreased by | 10 |
What is the cash flow from operations?
A) $156.
B) $170.
C) $135.
Correct answer is A)
Net Income | +$96 | |
Depreciation | +30 | |
Gain on sale of asset | -30 | |
Accts. Rec. | +30 | |
Inventory | +20 | |
Accts. Payable | +20 | |
Wage/Pay | -10 | |
| CFO | +$156 |
Q17. The Beeline Company has the following balance sheet and income statement.
Beeline Company Balance Sheet | |||||||
As of December 31, 2004 | |||||||
| |||||||
| 2003 | 2004 | | | 2003 | 2004 | |
Cash | $50 | $60 | | Accounts payable | $100 | $150 | |
Accounts receivable | 100 | 110 | | Long-term debt | 400 | 300 | |
Inventory | 200 | 180 | | Common stock | 50 | 50 | |
| | | | Retained earnings | 400 | 500 | |
Fixed assets (gross) | 800 | 900 | | Total liabilities and equity | $950 | $1,000 | |
Less: Accumulated depreciation | 200 | 250 | | | | | |
Fixed assets (net) | 600 | 650 | | | | | |
Total assets | $950 | $1,000 | | | | | |
Beeline Company Income Statement | |||||||
For year ended December 31, 2004 | |||||||
| |||||||
Sales | $1,000 | ||||||
Less: | | ||||||
COGS | 600 | ||||||
Depreciation | 50 | ||||||
Selling, general, and administrative expenses | 160 | ||||||
Interest expense | 23 | ||||||
Income before taxes | $167 | ||||||
Less tax | 67 | ||||||
Net income | $100 | ||||||
The cash flow from operations for 2004 is:
A) $210.
B) $260.
C) $150.
Correct answer is A)
Cash flow from operations (CFO) calculated using the indirect method is: net income (100) + depreciation (50) – increase in accounts receivable (10) + decrease in inventory (20) + increase in accounts payable (50) = $210.
thx
thanks
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