Reference no: EM132983988

Problem 1: Based on the following information, prepare a balance sheet.

Current Assets = $15,000; Property, Plant & Equipment = $25,000;

Accumulated Depreciation = $5,000; Accounts Payable = $5,000;

Notes Payable = $5,000; Total Liabilities = $25,000

Problem 2: If a company shows a profit on its Income Statement, how will this affect (a) the Balance Sheet and (b) Cash Flow?

Problem 3: What is the difference between the Direct Method and Indirect Method for calculating Cash Flow?

Problem 4: Given the following information, calculate the Net Free Cash Flow.

Net income = $25,000;

Capital expenditures = $4,000;

Cash dividends paid to shareholders = $2,500;

Repayment of Long-term debt = $1,500;

Depreciation, Depletion & Amortization = $5,000;

Increase in current assets = $250;

Increase in current liabilities = $750;