FI 393 Lecture Notes - Lecture 30: Current Liability, Accounts Payable, Promissory Note
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Below is a firm's cash flow statement. What are its operatingcash flows, financing cash flows and operating + investing cashflows?
Net loss | $ (2,221) |
Depreciation and amortization | 375 |
Impairment charges | 427 |
Merchandise inventories | 1,213 |
Merchandise payables | (526) |
Other operating assets | (649) |
Net cash used in operating activities | (1,381) |
Proceeds from sales of property and investments | 386 |
Purchases of property and equipment | (142) |
Net cash provided by investing activities | 244 |
Proceeds from debt issuances | 1,962 |
Increase (decrease) in short-term borrowings | (797) |
Proceeds from sale-leaseback financing | 71 |
Debt issuance costs | (51) |
Net cash provided by (used in) financing activities | 1,185 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 48 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 238 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 286 |
OCF + ICF = (1,137) |
OCF = (1,381) |
FCF = 1,185 |
Selected data for Kris Corporationâs comparative balance sheetsfor Year 1 and Year 2 are as follows:
Year 1 | Year 2 | |||||||
Assets | ||||||||
Cash | $ | 100,000 | $ | (50,000) | ||||
Accounts receivable (net) | 50,000 | 100,000 | ||||||
Inventory | 100,000 | 250,000 | ||||||
Equipment (net) | 300,000 | 350,000 | ||||||
Total assets | $ | 550,000 | $ | 650,000 | ||||
Liabilities and Equity | ||||||||
Accounts payable | $ | 150,000 | 100,000 | |||||
Income taxes payable | 80,000 | 30,000 | ||||||
Bonds payable | 100,000 | 80,000 | ||||||
Common stock | 100,000 | 200,000 | ||||||
Retained earnings | 120,000 | 240,000 | ||||||
Total liabilities and Equity | $ | 550,000 | $ | 650,000 | ||||
1. The change in the equipment balance would berecorded on the statement of cash flows as:
A) a decrease of $50,000 under investing activities.
B) an increase of $50,000 under investing activities.
C) a decrease of $150,000 under investing activities.
D) an increase of $150,000 under operating activities.
2. The change in the balance of the Bonds Payableaccount would be recorded on the statement of cash flowsas:
A) an increase of $20,000 under financing activities.
B) an increase of $80,000 under investing activities.
C) a decrease of $20,000 under financing activities.
D) a decrease of $80,000 under operating activities.