What was the firms end-of-year cash balance

Assignment Help Macroeconomics

Reference no: EM13181763

have just been hired as a financial analyst for Basel 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 $5.5 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and annual depreciation expense for the year is $460,000; 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 5% interest rate. What was the firm's end-of-year cash balance?

Reference no: EM13181763

Questions Cloud

What is the static npv and what is the strategic npv : If the cost of the capital is 15% by continuous compounding, the risk-free rate is 5% and the volatility is 0.3. What is the Static NPV and what is the Strategic NPV?

What kind of financial information does it contain : Is accrual basis superior to cash basis in meeting the economic decision-making needs of the users of financial statements? Why or why not?

What were some of the tactics of protectionism employed : What are the reasons why the colonized region in latin america remained underdeveloped? How/Why was the Great Depression considered an "imported crisis" for Latin America? Under ISI policies, Latin America became one of the most protectionist regio..

Explain production possibilities frontier : Given the elasticities in the above question and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, explain how higher gasoline taxes would affect the equilibrium price and quantity of SUV's..

What was the firms end-of-year cash balance : 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 ..

What was its charge for depreciation and amortization : earson Brothers recently reported an EBITDA of $16.5 million and net income of $2.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization?

What is the macrs depreciation in the 4rth year : our company has purchased a large ne truck for over thr road use(asset class 0.26).it has s cost basis of $180,000.With additional options costing $15,000,the cost basis for depreciation purposes is $195,000.its ,MV at th end if five years is esti..

What are the elements of financial position : What are the elements of financial position? Interrelate them and discuss their features and what are the elements of performance? Interrelate them and discuss their features.

Explain the oh bond so that a hydrogen ion dissociates : The compound Mg(OH)2 is basic, but Si(OH)4 is an acid (silicic acid). Why? Select all that apply. 1. The OH groups attached to the silicon atom in Si(OH)4 strengthen the OH bond so that a hydrogen ion dissociates when the compound is dissolved in ..

User Account

All Pages