Cilca Corporation is a supplier to the pulp and paper industry. Selected financial information about Cilca is listed below: • Purchased real estate for $440,000 in cash. The cash was borrowed from a bank. • Sold investments for $400,000. • Paid dividends of $480,000. • Issued shares of common stock for $200,000. • Purchased machinery and equipment for $100,000 cash. • Paid $360,000 on
a bank loan. • Reduced accounts receivable by $80,000. • Increased accounts payable $160,000. Sales for the period were $450,000 Use the above information to calculate Cilca's:
a. cash used or provided by operating activities
b. cash used or provided by financing activities
a . cash used or provided by operating activities:
Sales for the period 450,000
+reduction - in accounts receivable $80,000
= $690,000
b. cash used or provided by investing activities
+Received $440,000 of cash that was borrowed from a bank to purchase real estate
+Issued shares of common stock for $200,000
- Paid dividends of $480,000
- Paid $360,000 on a bank loan.
= $200,000 cash used by financing activities
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Everett, Miguel, and Ramona are partners, sharing income 1:2:3 . After selling all of the assets for cash, dividing losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Everett, $50,000 Cr.; Miguel, $40,000 Dr.; and Ramona, $30,000 Cr. How much cash is available for distribution to the partners?
a. $120,000 b. $30,000 c. $40,000 d. $90,000
The most effective innovative firms
a. have a product focus. b. make extensive use of formal procedures to insure conformity. c. utilize centralized decision making to generate more product concepts. d. are led by Transactional Leaders e. organize around customer groups.
Which of the following statements is correct?
A. A firm has estimated that it will save $40,000 in utility expenses annually if it replaces an old machine with a new, more technologically advanced machine. The $40,000 is a relevant cash flow that should be included in the computation of the machine's supplemental operating cash flows. B. Inflation does not need to be considered in capital budgeting analyses. C. The tax deduction associated with a project's depreciation expense is not a relevant cash flow in capital budgeting analyses. D. The sunk costs associated with a project are relevant cash flows that should be included in capital budgeting analyses. E. The cost of advertising a product that the firm currently produces and sells is a relevant cash flow that should be included in the evaluation of a new capital budgeting project.
"My direct reports will be Daniella as marketing manager, Katherine as R&D manager, Nick as engineering manager, Cara as projects manager, Emma as procurement manager, and Benito as construction manager. We've worked together for two years, and no one is better than these professionals. They will lead their respective subunit departments, work together in an integrated fashion, and support me very effectively," said Kenny, Executive Vice President for AllStar Technologies. These people represent Kenny's
A. parallel team. B. focus group. C. traditional work group. D. interest group. E. management team.