1.The following 20x5 information relates to Taylor, Inc.: 8 points each. Net Inc
ID: 2473438 • Letter: 1
Question
1.The following 20x5 information relates to Taylor, Inc.: 8 points each.
Net Income
$365,000
Depreciation Expense
96,000
Amortization of Intangible Assets
11,000
Beginning Accounts Receivable
420,000
Ending Accounts Receivable
439,000
Beginning Inventory
516,000
Ending Inventory
560,000
Beginning Prepaid Expenses
48,000
Ending Prepaid Expenses
42,000
Beginning Accounts Payable
119,000
Ending Accounts Payable
146,000
Purchase of Long-Term Assets for Cash
616,000
Cash from Issuance of Long-Term Debt
200,000
Issuance of Stock for Cash
160,000
Issuance of Stock for Long-Term Assets
110,000
Purchase of Treasury Stock
64,000
Sale of Long-Term Investment at Cost
39,000
a.Calculate the net cash flows from operating activities. Show your work.
b.Calculate the net cash flows from investing activities. Show your work.
c.Calculate the net cash flows from financing activities. Show your work.
d.Calculate the net change in cash. Show your work.
(Also need help setting it up into a correct journal entry format! Thanks!!
Net Income
$365,000
Depreciation Expense
96,000
Amortization of Intangible Assets
11,000
Beginning Accounts Receivable
420,000
Ending Accounts Receivable
439,000
Beginning Inventory
516,000
Ending Inventory
560,000
Beginning Prepaid Expenses
48,000
Ending Prepaid Expenses
42,000
Beginning Accounts Payable
119,000
Ending Accounts Payable
146,000
Purchase of Long-Term Assets for Cash
616,000
Cash from Issuance of Long-Term Debt
200,000
Issuance of Stock for Cash
160,000
Issuance of Stock for Long-Term Assets
110,000
Purchase of Treasury Stock
64,000
Sale of Long-Term Investment at Cost
39,000
Explanation / Answer
Details Amount Amount Ans 1 Net Income 3,65,000.00 Depreciation Expense 96,000.00 Amortization of Intangible Assets 11,000.00 Operating Cash flow Before WC changes 4,72,000.00 Less Increase in WC Increase in AR -19,000.00 Increase in Inventory -44,000.00 Add: Decrease in WC Decrease in Prepaid expense 6,000.00 Increase in Accounts Payable 27,000.00 -30,000.00 Operating Cash flow After WC changes 4,42,000.00 Ans 2 Purchase of Long-Term Assets for Cash -6,16,000.00 Sale of Long-Term Investment at Cost 30,000.00 Net Cash used in Investing Activity -5,86,000.00 Ans 3 Cash from Issuance of Long-Term Debt 2,00,000.00 Issuance of Stock for Cash 1,60,000.00 Purchase of Treasury Stock -64,000.00 2,96,000.00 Ans 4 Net change in cash 1,52,000.00
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