What was the firm end-of-year cash balance

Assignment Help Financial Management

Reference no: EM131974746

STATEMENT OF CASH FLOWS You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.

Reference no: EM131974746

Questions Cloud

What is castle state bank tax management efficiency ratio : Following data pertains to Castle State Bank. What is Castle State Bank's tax management efficiency ratio?

What is the total amount of interest paid : What is the total amount of interest paid to the lender over the entire 30-year loan?

Roles and responsibility of forensic psychology professional : Consider the roles and responsibilities of forensic psychology professionals. Pick the type of family violence among the three that interests you the most.

How do utilitarian ethicists explain and defend the theory : How do Utilitarian Ethicists explain and defend this theory? In light of this findings of critical thinking, which option would Utilitarians recommend?

What was the firm end-of-year cash balance : What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer.

Confidence interval for the mean maximum attenuation : Is there strong evidence that the population mean maximum attenuation for all possible products is greater than 9.25db?

What was cash flow from operating activities : What was the cash flow from operating activities? what was the firm's net income? $

Identify the null hypothesis and alternative hypothesis : Based on the sample results, the researcher concludes that the pulse rates of men have a standard deviation greater than 10 beats per minutes.

How could you imagine using each model : How could you imagine using each model as a practitioner-scholar working in your specialization? Give an example of how you would use each model to evaluate.

User Account

All Pages