Problem 1 AZ Corporate Income Statement-Current Year A-Z Corporation Current Yea

Question

Problem 1

AZ Corporate Income Statement-Current Year A-Z Corporation Current Year Income Statement (in SMillions Sales Cost of Goods Sold Depreciation Earmings Before Interest and Taxes $1.424 844 250 $330 Earnings Before Taxes Taxes Net Income $330 116 $214 Use A-Z Corporation's income sta A-Z has a $76 million increase in accounts receivable. a $55 million increase in accounts payable, a $21 million decrease in invent A-Z has a $76 million increase in accounts receivable a $55 million increase in accounts payable, a $21 million decrease in inventories, and $39 million decrease in accrual expense . What is the company's cash flow from operations? $289 million $377 million $425 million $526 million NEXT > BOOKMARK CLEAR

Explanation / Answer

1.

Cash flow from operation : $425 Million

2.

Cash flow from investing activity = Opening Blance of fixed assets - Closing Balance of FA

Cash flow from investing activity = $1466-$1351 = ($115 thousand)

3. $98 million

Net income $214 Add Depriciation $250 Increase in accounts payable 55 Decrease in inventory 21 $540 Less Increase in accounts receivable (76) Decrease in accrual exp (39) Cash flow from operation $425

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