Reference no: EM132463425
Problem 1) The following information is related to Towson Company's fiscal year 2018.
Income Statement:
Net Income $3,400,000
Depreciation Expense 450,000
Loss on Sale of Plant Assets 55,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable decrease 25,000
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Additional Information:
- Common Stock exchanged for outstanding Long Term Notes Payable of $125,000
- Dividends paid were $30,000
Questoion 1: Use this information to determine Towson Company's Net Cash Flows from Operating Activities. If the amount is an outflow then enclose the amount with dollar sign inside of brackets ( ).
Problem 2) The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal):
Item/Account 2018 2017
Cash 34,000 $24,000
Accounts Receivable 52,000 52,000
Inventory 47,000 48,000
Current Liabilities 65,000 42,000
Net Sales (all credit) 550,000 485,000
Cost of Goods Sold 288,000 265,000
Question 2: Use this information to determine the number of current ratio as of December 31, 2018: (Round & enter your answers to one decimal place and enter the value.)