Board logo

标题: Reading 34: Understanding the Cash Flow Statement - LOS f, [打印本页]

作者: mayanfang1    时间: 2009-1-17 13:46     标题: [2009]Session 8 - Reading 34: Understanding the Cash Flow Statement - LOS f,

Q1. The following information is from the balance sheet of Silverstone Company:

Net Income for 5/1/05 to 5/31/05: $8,000

Balance 5/01/05

Account  

Balance 5/31/05

$2,000  

Inventory  

$1,750

$1,200  

Prepaid exp.  

$1,700

$800  

Accum. Depr.   

$975

$425  

Accounts payable  

$625

$650  

Bonds payable  

$550

Using the indirect method, calculate the cash flow from operations for Silverstone Company as of 5/31/05:

A)   Increase in cash of $7,725.

B)   Increase in cash of $8,125.

C)   Increase in cash of $8,025.

Q2. Convenience Travel Corp.’s financial information for the year ended December 31, 2004 included the following:

Property Plant & Equipment       $15,000,000

Accumulated Depreciation         9,000,000

The only asset owned by Convenience Travel in 2005 was a corporate jet airplane. The airplane was being depreciated over a 15-year period on a straight-line basis at a rate of $1,000,000 per year. On December 31, 2005 Convenience Travel sold the airplane for $10,000,000 cash. Net income for the year ended December 31, 2005 was $12,000,000. Based on the above information, and ignoring taxes, what is cash flow from operations (CFO) for Convenience Travel for the year ended December 31, 2005?

A)   $8,000,000.

B)   $12,000,000.

C)   $13,000,000.

Q3. Darth Corporation’s most recent income statement shows net sales of $6,000, and Darth’s marginal tax rate is 40%. The total expenses reported were $3,200, all of which were paid in cash. In addition, depreciation expense was reported at $800. A further examination of the most recent balance sheets reveals that accounts receivable during that period increased by $1,000. The cash flow from operating activities reported by Darth should be:

A)   $1,200.

B)   $2,200.

C)   $1,000.

Q4. Use the following financial data for Moose Printing Corporation to calculate the cash flow from operations (CFO) using the indirect method.

A)   Increase in cash of $248.

B)   Increase in cash of $173.

C)   Increase in cash of $183.


作者: mayanfang1    时间: 2009-1-17 13:47

答案和详解如下:

Q1. The following information is from the balance sheet of Silverstone Company:

Net Income for 5/1/05 to 5/31/05: $8,000

Balance 5/01/05

Account  

Balance 5/31/05

$2,000  

Inventory  

$1,750

$1,200  

Prepaid exp.  

$1,700

$800  

Accum. Depr.   

$975

$425  

Accounts payable  

$625

$650  

Bonds payable  

$550

Using the indirect method, calculate the cash flow from operations for Silverstone Company as of 5/31/05:

A)   Increase in cash of $7,725.

B)   Increase in cash of $8,125.

C)   Increase in cash of $8,025.

Correct answer is B)

Silverstone Company’s cash flow from operations would be calculated as +Net Income $8,000 + Inventory $250 - Prepaid exp. $500 + Depreciation $175 + A/P $200 = $8,125.

Bonds payable is a financing activity and would not be included in the cash flow from operations. The indirect method takes the change in the non-cash accounts and decreases or increases net income to get to the change in cash flow.

Q2. Convenience Travel Corp.’s financial information for the year ended December 31, 2004 included the following:

Property Plant & Equipment       $15,000,000

Accumulated Depreciation         9,000,000

The only asset owned by Convenience Travel in 2005 was a corporate jet airplane. The airplane was being depreciated over a 15-year period on a straight-line basis at a rate of $1,000,000 per year. On December 31, 2005 Convenience Travel sold the airplane for $10,000,000 cash. Net income for the year ended December 31, 2005 was $12,000,000. Based on the above information, and ignoring taxes, what is cash flow from operations (CFO) for Convenience Travel for the year ended December 31, 2005?

A)   $8,000,000.

B)   $12,000,000.

C)   $13,000,000.

Correct answer is A)

Using the indirect method, CFO is net income increased by 2005 depreciation ($1,000,000) and decreased by the gain recognized on the sale of the plane [$10,000,000 sale price − ($15,000,000 original cost − $10,000,000 accumulated depreciation including 2005) = $5,000,000]. $12,000,000 + $1,000,000 − $5,000,000 = $8,000,000.

Q3. Darth Corporation’s most recent income statement shows net sales of $6,000, and Darth’s marginal tax rate is 40%. The total expenses reported were $3,200, all of which were paid in cash. In addition, depreciation expense was reported at $800. A further examination of the most recent balance sheets reveals that accounts receivable during that period increased by $1,000. The cash flow from operating activities reported by Darth should be:

A)   $1,200.

B)   $2,200.

C)   $1,000.

Correct answer is C)         

Net income is ($6,000 – 3,200 – 800)(1 – 0.4) = $1,200. Adjustments to reconcile net income to cash flow from operating activities will require that depreciation ($800) be added back, and increase in accounts receivable ($1,000) be subtracted: $1,200 + 800 – 1,000 = $1,000.

Q4. Use the following financial data for Moose Printing Corporation to calculate the cash flow from operations (CFO) using the indirect method.

A)   Increase in cash of $248.

B)   Increase in cash of $173.

C)   Increase in cash of $183.

Correct answer is A)

CFO for Moose Printing Corporation is calculated as follows:

+Net Income $225 − A/R $55 + Inventory $33 + Depreciation $65 − A/P $25 + Wages Payable $15 − Deferred taxes $10 = $248.

The purchase of new equipment would be an investing activity and, therefore, would not be included in the CFO. Dividends paid would be a financing activity and would not be included in the CFO.


作者: goofey    时间: 2009-2-12 21:39

thanks
作者: mcdullpong    时间: 2009-3-15 12:38

  thanks
作者: wxvivian    时间: 2009-3-21 01:21

 t
作者: sorrybabyfish    时间: 2009-3-22 10:44

thx
作者: saint_zhu    时间: 2009-3-27 14:48

focus
作者: gracesun    时间: 2009-3-29 12:27

 thank you very much

作者: wangyoucao    时间: 2009-4-3 15:25

thanks
作者: hjl2000    时间: 2009-4-5 23:16

d
作者: connie198226    时间: 2009-4-11 11:19

ss
作者: leyan6042    时间: 2009-4-15 11:27

CCCA
作者: dullmul    时间: 2009-4-18 14:15

thx
作者: bartzzr    时间: 2009-4-21 23:24

thx
作者: yk2lin    时间: 2009-4-23 00:20

 tx
作者: 长弓    时间: 2009-4-25 18:57

[em60][em60] 
作者: 大狗狗    时间: 2009-4-28 14:27

k
作者: ruyueyu    时间: 2009-4-30 15:38

thx
作者: fishto    时间: 2009-5-2 22:58

a
作者: big36999    时间: 2009-5-7 10:01

thanks
作者: duo1115    时间: 2009-5-7 12:38

see
作者: 风烈    时间: 2009-5-8 20:14

谢谢楼主~
作者: alecliang    时间: 2009-5-11 19:03

a
作者: jacky_lu79    时间: 2009-5-12 18:13

 thx
作者: cynthia85    时间: 2009-5-12 21:27

fgds
作者: szislet    时间: 2009-5-14 08:30

答。。。。。。。。。。
作者: IloveMay    时间: 2009-5-14 15:15

Thanks !


作者: carolineye    时间: 2009-5-14 16:01

 Thanks.
作者: dxxiao    时间: 2009-5-20 09:18

thx
作者: itispig    时间: 2009-5-22 12:27

thanks


作者: ray0106    时间: 2009-5-23 21:34

D
作者: ytmm    时间: 2009-5-24 20:37

xx

作者: helloalan    时间: 2009-5-25 14:48

 baca
作者: miaozhu    时间: 2009-6-1 13:52

thanks
作者: au_cafe    时间: 2009-6-3 02:45

 a

作者: indrax    时间: 2009-6-3 14:32

thx
作者: hairliu1    时间: 2009-6-5 06:43

thks
作者: baodexi    时间: 2009-6-18 18:38

谢谢
作者: vandilapire    时间: 2009-7-12 22:32

thank you very much!
作者: lamchoonho    时间: 2009-8-13 20:22

  thanks
作者: luodan0103    时间: 2009-8-17 20:24

thanks
作者: josephine_loh    时间: 2009-8-26 13:35

tq
作者: zaestau    时间: 2009-9-16 14:51

 cc
作者: htpeng    时间: 2009-9-18 02:54

c
作者: jimli32    时间: 2009-10-5 10:32

[em50] 
作者: woshidengl    时间: 2009-10-5 11:54

3ks
作者: huili_zee    时间: 2009-10-8 20:43

j
作者: tobuketsu    时间: 2009-10-12 11:22     标题: re

 th
作者: hw92901122    时间: 2009-10-14 16:52

thx
作者: samuel7    时间: 2009-10-14 18:16

thanks
作者: garmun    时间: 2009-10-17 22:41

 tq
作者: iloverere    时间: 2009-10-26 22:39

 re
作者: rockuk    时间: 2009-10-27 08:34

 CBBA
作者: mellsa    时间: 2009-10-31 15:12

aaa
作者: haisian    时间: 2009-11-10 14:18

猜猜
作者: frych    时间: 2009-11-12 12:13

 rd
作者: rockmelon    时间: 2009-11-16 11:06

RE
作者: whjens    时间: 2009-11-21 05:27     标题: d

d
作者: guopeng0304    时间: 2009-11-23 17:07

d
作者: hd-catherine    时间: 2009-11-23 22:05

dd
作者: sibrinall    时间: 2009-11-25 19:21

[em60]
作者: mikewang    时间: 2009-11-26 01:08


作者: doralin    时间: 2009-11-26 10:44

[em50]
作者: sabinexz    时间: 2009-11-28 01:18

thx
作者: supercatqb    时间: 2009-12-3 02:02

 thx
作者: jrxx99    时间: 2009-12-14 11:18

看看看看看看看看看看看看看看看看看
作者: flyingdance_nan    时间: 2010-3-20 03:47

great
作者: leeyaoxee    时间: 2010-3-26 04:32

thnx
作者: zoomair    时间: 2010-4-2 12:17

thanks
作者: sophia19    时间: 2010-4-10 16:08

c
作者: lqc666    时间: 2010-4-15 00:15     标题: 谢谢

 谢谢
作者: iloveChi    时间: 2010-4-15 10:40

ss
作者: shxjm    时间: 2010-4-16 18:20

thanks
作者: shxjm    时间: 2010-4-16 21:17

thanks


作者: shxjm    时间: 2010-4-19 11:02

thanks
作者: jhqhj    时间: 2010-4-27 16:19

bcca
作者: sir_2005    时间: 2010-4-27 20:28

ACCA
作者: jerrywang0    时间: 2010-5-14 17:53

q
作者: 0939    时间: 2010-5-19 00:30

[em50] 
作者: annyyu    时间: 2010-5-19 13:34

re
作者: danforth    时间: 2010-5-31 12:25

d
作者: leoniegolly    时间: 2010-6-1 21:08

1
作者: leoniegolly    时间: 2010-6-2 11:40

1
作者: zhyue_2000    时间: 2010-6-4 11:44

thx
作者: micynthia    时间: 2010-6-5 08:22

/
作者: casiofd    时间: 2010-8-9 22:21

ans
作者: bobchin    时间: 2010-8-20 21:23

1
作者: scofield1985    时间: 2010-9-2 07:21

d
作者: limos    时间: 2010-9-18 23:01

 3x
作者: heartfc    时间: 2010-10-18 19:37

谢谢楼主的分享
作者: Mia_Fei    时间: 2010-10-21 18:30

thx for sharing
作者: echopapa    时间: 2010-11-1 04:52

thx
作者: JK22    时间: 2010-11-2 20:36

ss
作者: seraphiris0116    时间: 2010-11-13 18:33

thanks
作者: jc1188    时间: 2010-11-28 18:25

d
作者: btz2009    时间: 2010-11-28 21:14

xx


作者: cosimo    时间: 2011-5-12 10:18

谢谢
作者: southnorth    时间: 2011-5-14 07:58

caca
作者: lixinhai080    时间: 2011-5-15 02:11

C
作者: shixingyu    时间: 2011-5-17 04:26

thx




欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) Powered by Discuz! 7.2