Solution-Compute free cash flow for chicago corporation

Compute free cash flow for chicago corporation

Assignment Help Cost Accounting

Reference no: EM13513398

Chicago Corporation issued the following statement of cash flows for 2012.

Cash flows from operating activities
Net income		$19,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense	$ 8,100
Loss on disposal of plant assets	1,300
Decrease in accounts receivable	6,900
Increase in inventory	(4,000)
Decrease in accounts payable	(2,000)	10,300
Net cash provided by operating activities		29,300
Cash flows from investing activities
Sale of investments	1,100
Purchase of equipment	(19,000)
Net cash used by investing activities		(17,900)
Cash flows from financing activities
Issuance of stock	10,000
Payment on long-term note payable	(5,000)
Payment for dividends	(9,000)
Net cash used by financing activities		(4,000)
Net increase in cash		7,400
Cash at beginning of year		10,000
Cash at end of year		$ 17,400

(a) Compute free cash flow for Chicago Corporation. (b) Explain why free cash flow often provides better information than "Net cash provided by operating activities."

Reference no: EM13513398

Questions Cloud

How would transaction be handled on statement of cash flows : The Bodner Corporation sold a machine with a cost of $10,000 and accumulated depreciation of $6,000 for a selling price of (a) $7,000; (b) $2,000. How would this transaction be handled on the statement of cash flows?

Prepare the current assets section of the balance sheet : Prepare the current assets section of the balance sheet for Superior Company as of December 31, 2012.

Compare and contrastthe lamentation over the dead christ : Compare and contrastthe Lamentation over the dead Christ, Nazeri and The Lamentation of Giotto. Include STYLE as one of the areas of comparison.

How much was depreciation expense for the year : How much was depreciation expense for the year - Use a T-account to justify your answer.

Compute free cash flow for chicago corporation : Compute free cash flow for Chicago Corporation. Explain why free cash flow often provides better information than "Net cash provided by operating activities."

Find angle does the velocity vector make with the horizontal : A soccer player kicks a ball from ground level with an initial velocity of 25 m/s at an angle of 30° above the horizontal. What angle does the velocity vector make with the horizontal

Show a t-account for your analysis : The beginning and ending balances of the Plant account were $12,000 and $20,000, respectively, and during the period a building with a cost of $6,000 and accumulated depreciation of $3,000 was sold for $9,000. How much in plant purchases were made..

How is status shown in modern day burials : Please answer this question as a journal: How is status shown in modern day burials? Consider material and skeletal remains.

Compute total manufacturing costs for the month : Enter each cost item on your answer sheet, placing an "X" under the appropriate headings. Compute total manufacturing costs for the month.

User Account

All Pages

Compute free cash flow for chicago corporation

Reference no: EM13513398

Reference no: EM13513398

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT