Does junes camera shop appear to have grown in size

Assignment Help Financial Accounting

Reference no: EM13941074

Case: THE STATEMENT OF CASH FLOWS AND CREDIT ANALYSIS

June's Camera Shop sells cameras and photographic supplies of all types to retail cus- tomers. June's also repairs cameras and provides color prints. To compete with other camera departments, June's offers fast, efficient, and effective repairs and photographic processing. For fiscal 2009 and 2008, June's accountant prepared the follow- ing statements of cash flows:

June's Camera Shop Statements of Cash Flows For the Years Ended January 31, 2009 and 2008
	2009		2008
Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in wages payable Increase in income taxes payable Depreciation expense Total adjustments Net cash provided by operating activities Cash flows from investing activities Purchase of long-term investments Purchase of equipment Net cash used by investing activities Cash flows from financing activities Principal payments on mortgage Payment of dividends Net cash used by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year		$ 87,000		$ 63,000
	$(17,000)		$(12,000)
	(19,000)		(11,000)
	15,000		14,000
	11,000		5,000
	6,000		3,000
	41,000		37,000
		37,000		36,000
		$124,000		$ 99,000
	$(15,000)		$(10,000)
	(45,000)		(40,000)
		(60,000)		(50,000)
	$(15,000)		$(15,000)
	(12,000)		(10,000)
		(27,000)		(25,000)
		$ 37,000		$ 24,000
		158,000		134,000
		$195,000		$158,000

Required:

1. Does June's Camera Shop appear to have grown in size during the past two years?

2. June's president, June Smith, would like to open a second store. Smith believes that $225,000 is needed to equip the facility properly. The business has $100,000 of cash and liquid investments to apply toward the $225,000 required. Do the data in the 2009 and 2008 statements of cash flow suggest whether or not June's Camera Shop is likely to be able to secure a loan for the remaining $125,000 needed for the expansion?

3. How long should it take June's Camera Shop to pay back the $125,000?

Reference no: EM13941074

Questions Cloud

Importance to consumer behaviour and marketing : Discuss the concept of perceived value and its importance to consumer behaviour and marketing.

Culture and leadership of the organisation : A critical review of the culture and leadership of the organisation. You should review these factors and consider their impact on the strategic decisions made. Your review may include consideration of the history of the organisation, its mission a..

Write a static method to check the string : The max() method cannot read any input values, nor print any output values. All input and printing is done by the main() method that calls max().

Where does liability lie for the managed care organization : Discuss the options, if any, MCO or PPO plan members have when denied coverage for medically necessary care.

Does junes camera shop appear to have grown in size : Does June's Camera Shop appear to have grown in size during the past two years? How long should it take June's Camera Shop to pay back the $125,000?

Market entry strategies that ikea adopt : Describe the market entry strategies that IKEA adopt in China and Japan respectively.

Requirements for packaging and stowage : Determine packaging and stowage requirements (3.1, 3.2, 3.3, 3.4) Analyse and determine the best options and requirements for packaging and stowage of your product.Research and document/ record the suitability and availability of the packaging and..

Writing a class using conditionals that test double values : To approximate the square root of a positive number n using Newton's method, you need to make an initial guess at the root and then refine this guess until it is "close enough.

Oultine of risk management plan : Complete risk management planning by providing an oultine of risk management plan and providing a brief description of the project.

User Account

All Pages