Statement Of Cash Flows Flashcards
Intel reported the following for 2014:
Net income $100,000
Depreciation $20,000
Change an AR $10,000
What is the cash flow from operating activities?
A. $100,000
B. $110,000
C. $120,000
D. ($130,000)
(net income + depreciation expense - change and operating accounts)
B. $110,000
$100,000 + $20,000 - $10,000
(net income + depreciation expense - change and operating accounts)
Which of the following accounts are only included in cash flows from financing (CFF)?
A. Accounts receivable, accrued expenses, net income.
B. Dividends paid, property plant and equipment, cash
C. Net income, common stock, accrued expenses.
D. Common stock, dividends paid, bonds payable.
(CFF= change in LT debt (bonds) + change is stock (equity) - dividends paid)
D. Common stock, dividends paid, bonds payable.
The statement of cash flows is:
A. Calculated for the same period of time as the income statement.
B. Calculate based on the income statement and the changes in the balance sheet.
C. Is one of the three basic accounting statements
D. All of the above.
D. All of the above
Intel reported the following for 2014:
Gross equipment (1/1/14) $50,000
Gross equipment (12/31/14) $65,000
Net income $100,000
Depreciation $20,000
What is the cash flow from investing activities for 2014?
A. $100,000
B. $80,000
C. ($15,000)
D. $15,000.
CFI = (change in gross PPE) x (-1)
C. ($15,000)
CFI = (change in gross PPE) x (-1)
CFI= (65,000 a 50,000) x (-1)
CFI= 15,000 x (-1)
CFI= (15,000)
What is the cash flow from operations given the following information?
Net income $450,000
Change in AR $120,000
Change an inventory ($90,000)
Change in PP&E $60,000
Depreciation exp $110,000
Change an AP $50,000
Change in accrued exp ($75,000)
Change in common stock $300,000
A. $570,000
B. $410,000
C. $505,000
D. $375,000
CFO= net income + depreciation expense - change and operating accounts
D. $505,009
Operating accounts: AR, inventory, AP, accrued expenses (120,000 + (90,000) + 50,000+ (75,000)
450,000 + 110,000 - 120,000 + 90,000 + 50,000 - 75,000 =505,000
CFO= net income + depreciation expense - change and operating accounts
What is the cash flow from investing?
Increase in gross PP&E $125,000
Beginning Net PP&E $750,000
Ending Met PP&E $850,000
Depreciation Expense $25,000
A. (850,000)
B. (125,000)
C. 150,000
D. (75,000)
CFI= (change in Net PPE + Depreciation Expense) x (-1)
B. (125,000)
((850,000-750,000) + 25,000) x (-1)
(100,000 + 25,000) x -1
125,000 x -1
What is the cash flow from investing?
Beginning net PP&E $250,000
Ending net PP&E $300,000
Depreciation Expense $40,000
Change in long term investment $100,000
Change in short term investments $50,000
A. 190,000 outflow
B. 150,000 inflow
C. 340,000 outflow
D. 90,000 inflow
Change net PPE + depreciation expense x (-1)
A. 190,000 outflow
((300,000-250,000) + 40,000) x-1
(50,000 + 40,000) x-1
Add in change in LT investments
$190,000 x -1
What is the cash flow from financing?
Accounts Payable $100,000
Account Expenses $50,000
Increase in mortgage payments $300,000
Decrease in Bonds Payable $75,000
Dividends paid $80,000
A. 505,000
B. 225,000
C. 230,000
D. 145,000
CFF= change in LT debts (bonds) + change is stock (equity) - dividends paid
D. 145,00
CFF= change in LT debts (bonds) + change is stock (equity) - dividends
300,000-75,000-80,000 =145,000
When fixed assets increase what happens to cash?
A. Cash stays the same
B. Cash increases
C. Cash decreases
D. Assets decrease
C. Cash decreases
Last year a firm recorded net PP&E of $4,600 while this year the same firm recorded net PP&E of $4,500. If the depreciation expense for last year and this year are $500 and $800 respectively, what is the CFI of the company? (Assume no asset disposals)
A. 100 outflow
B. 900 outflow
C. 100 inflow
D. 700 outflow
CFI= (change in net ppe + dep expense) x (-1)
D. 700 outflow
CFI= (change in net ppe + dep expense) x (-1)
(-100,000 + 800,000) x -1
700,000 x -1
What is the purpose of the statement of cash flows?
A. Serves as the replacement for the income statement and balance sheet
B. Explains the change in Cash balance at one point in time
C. Explains the change in cash over the course of the specified timeframe
D. Both A and B
C. Explains the change in cash over the course of the specified timeframe
Financial data for intel is given below for 2014:
- EBIT 1,000,000
- Depreciation 30,000
- Change in working capital (10,000)
- Net capital expenditures 15,000
- tax rate 40%
Compute the Free Cash Flow for 2014.
A. 610,000
B. 675,000
C. 625,000
D. 600,000
FCFF= EBIT (-t) + depreciation - inc NWC -
C. 625,000
FCFF= EBIT (-t) + depreciation - inc NWC - capex
1,000 * (1-.4) + 30 +10 - 15
