The 2010 balance sheet of Maria\'s Tennis Shop, Inc., showed long-term debt of $
ID: 2382617 • Letter: T
Question
The 2010 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $5.6 million, and the 2011 balance sheet showed long-term debt of $5.80 million. The 2011 income statement showed an interest expense of $185,000. During 2011, Maria’s Tennis Shop, Inc. realized the following:
The 2010 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $5.6 million, and the 2011 balance sheet showed long-term debt of $5.80 million. The 2011 income statement showed an interest expense of $185,000. During 2011, Maria’s Tennis Shop, Inc. realized the following:
Explanation / Answer
Calculation Particulars Amt $ As the net profit amount is not available, assuming cashflow to stockholders as the profit amount from P/L Therefore, profir frpm P/L 65,000 a Add back interest paid 185,000 b Add reduction in working capital investment 77,000 c Total Cash Flow from Operating Activities 327,000 (a+b+c)
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