Find cash flow from operations using the indirect method

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Reference no: EM132314911

Question

1). On January 1, 2017, Exiter Company issued 15-year, $1,500,000 face value, 5% bonds, at par. Each $1,000 bond is convertible into 20 shares of Newcomer common stock. McMaster's net income in 2017 was $142,000, and its tax rate was 30%. The company had 50,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017. Help find the diluted earnings per share for 2017? Round to nearest cent. (Please show all work)

2). In analyzing a company's financial statements, which financial statement would a potential investor primarily use to assess the company's liquidity?

a. Balance sheet.

b. Statement of retained earnings.

c. Income statement.

d. Statement of cash flows.

3) Required: Help find cash flow from operations using the indirect method and the following data: (Please show all work)

Net Income was $57,000

Accounts receivable decreased by $12,000

Inventory increased by $9,000

Proceeds from issuing long term debts was $25,000

Accounts Payable increased $4,500

Equipment Purchases were $95,000

Depreciation and amortization expense was $21,000

Prepaid expenses decreased $5,000

Reference no: EM132314911

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