Calculate and display cash from financing activities

Assignment Help Finance Basics

Reference no: EM131007576

Lansing Inc., a profitable food products manufacturer, has undertaken a major expansion that will be financed by new debt and equity issues as well as earnings. During the last year the company borrowed $5 million for a term of 30 years to finance a new building to house the expanded operations. It also sold 60,000 shares of $4 par value stock at $51 per share to pay for new equipment. It also paid off short-term loans that support inventory and receivables totaling $700,000 as they came due and took out new short-term debt for the same purpose of $850,000, which was outstanding at year end. Lansing also made a scheduled pay- ment of $500,000 on an old long-term loan with which it had acquired produc- tion equipment several years ago. The payment included interest of $425,000.

Finally the firm paid dividends of $2.50 per share on 700,000 shares of outstanding common stock. Calculate and display the Cash from Financing Activities sec- tion of Lansing's statement of cash flows.

Reference no: EM131007576

Questions Cloud

Use the t account method to assist in your analysis : Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis.

Identify what information would be important to collect : Review the case study for "Zell Kravinsky" - Identify what information would be important to collect during the initial assessment process to make a diagnosis and why

Slattery ability to achieve level of growth : What do your projections imply for Slattery's owners/managers? How would you evaluate Slattery's ability to achieve this level of growth (as measured by the increase in fixed assets)?

Prepare the statement of cash flows for dux company : Prepare the statement of cash flows for Dux Company. Use the T-account method to assist in your analysis.

Calculate and display cash from financing activities : Finally the firm paid dividends of $2.50 per share on 700,000 shares of outstanding common stock. Calculate and display the Cash from Financing Activities sec- tion of Lansing's statement of cash flows.

Double declining balance depreciation : A small used delivery van can be purchased for $18,000. At the end of its useful life (eight years), the van can be sold for $2,500. Determine the PW of the depreciation schedule based on 10% interest using: Straight-line depreciation, Double declini..

Think about the purpose of psychological first aid : Think about the purpose of psychological first aid and how it is used during the initial response to survivors of disasters, crises, and traumas

Construct the cash flow from investing activities : Construct the Cash Flow from Investing Activities section of the statement of cash flows to concisely convey the maximum information to readers of the company's financial statements.

What is the ?rms cost of capital before taxes : A ?rm’s stockholders expect an 18% rate of return, and there is $22M in common stock and retained earnings. The ?rm has $9M in loans at an average rate of 8%. The ?rm has raised $14M by selling bonds at an average rate of 4%. What is the ?rm’s cost o..

User Account

All Pages