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Compute the cash flow from asset for blow corporation

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Reference no: EM133023992

Question - Following information is extracted from the books of Blow Corporation.

a. Current Accounts

2019: CA = 22,900; CL = 15,300

2018: CA = 17,600; CL = 12,400

b. Fixed Assets and Depreciation

2019: NFA = 98,100; 2018: NFA = 75,700

Depreciation Expense = 2700

c. Long-term Debt and Equity (R.E. not given)

2019: LTD = 47,000; Common stock & APIC = 1,400

2018: LTD = 35,850; Common stock & APIC = 1,400

d. Income Statement

EBIT = 22,000; Taxes = 1400

Interest Expense = 2,840; Dividends = 2,700

Required -

i. Compute the cash flow from asset for Blow Corporation.

ii. Comment on usefulness of cash flow from asset in financial decision making.

Reference no: EM133023992

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