Calculate cash flow from operating activities

Assignment Help Financial Accounting
Reference no: EM132805178

Question - Assume the following income statement and balance sheet information:

Service revenue (all cash) $175

Operating expenses

Salaries (all cash) 85

Net income $90

2020 2019

Current assets

Cash $1,250 $1,600

Short-term invest. 100 200

$1,350 $1,800

Liabilities

Borrowings 600 1,000

Stockholders' equity

Common stock 200 300

Retained earnings 550 500

750 800

$1,350 $1,800

Other information: The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Borrowings are non- current. No gain or loss occurred when common stock was repurchased.

Required -

1. Calculate cash flow from operating activities.

2. Prepare the 2020 statement of changes in equity.

3. Calculate cash flow from financing activities.

4. Create a cash flow table. Show that cash effects net to a $450 outflow.

Reference no: EM132805178

Questions Cloud

Describe adornos views on standardization : Describe Adorno's views on standardization and pseudo-individualization. Share a unique example from pop culture (movies, songs, books, etc.) that follows.
What students have discovered about professional practice : Students maintained and submitted weekly reflective narratives throughout the course to explore the personal knowledge and skills gained throughout this course.
Compare the four primary functions of a dc : Compare and contrast the four primary functions of a DC: accumulation, sortation, allocation, and assortment. Accumulation refers to the receipt and collection
Discuss the role of distribution in supply chain : Discuss the role of distribution in supply chain. Provide examples of how distribution operations can positively and negatively impact supply chain performance.
Calculate cash flow from operating activities : The short-term investments are riskless and will be converted to a known amount of cash in 60 days. Calculate cash flow from operating activities
Describe how will maternity care change in the future : Mrs. Wong, a first-time mother, is admitted to the birthing suite in early labor after spontaneous rupture of membranes at home.
Describe in detail processes that google uses to prioritize : Why do some search results appear before others? Describe in detail the processes that Google uses to prioritize the positioning of search results?
What is the expected rate of return to an Indian investor : The average rate of return in Indian stocks is 20%. What is the expected rate of return to an Indian investor investing in Australia
Explain the rationale for each of the medications listed : Discuss whether the nursing interventions at the time of her admissions were appropriate for Mrs. J. and explain the rationale for each of the medications.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd