pegnancial Statements 35 11. Selected information for Blake\'s Restaurant Supply
ID: 2551006 • Letter: P
Question
pegnancial Statements 35 11. Selected information for Blake's Restaurant Supply follows. ($ millions) 2016 2017 Net sales Cost of goods sold Depreciation Net income Finished goods inventory Accounts receivable Accounts payable Net fixed assets Year-end cash balance 694 450 51 130 39 57 39 404 86 782 502 61 142 29 87 482 135 a. During 2017, how much cash did Blake's collect from sales? b. During 2017, what was the cost of goods produced by the company? c. Assuming the company neither sold nor salvaged any assets during the year, what were the company's capital expenditures during 2017? d. Assuming there were no financing cash flows during 2017 and bas- ing your answer solely on the information provided, what was Blake's cash flow from operations in 2017?Explanation / Answer
Requirement a Cash collected from sales during 2017 ($ Millions) Net sales 782 Add: Beginning Accounts Receivable 57 Total amount to collected against sales 839 Less: Ending Accounts Receivable -87 Cash collected from sales during 2017 752 Requirement b Cost of goods produced during 2017 ($ Millions) Cost of goods sold 502 Add: Ending finished goods inventory 29 Cost of goods avaiable for sale 531 Less: Beginning finished goods inventory -39 Cost of goods produced during 2017 492 Requirement c Capital expenditure incurred during 2017 ($ Millions) Net Fixed Assets in 2017 482 Add: Depreciation 61 543 Less: Net Fixed Assets in 2016 -404 Capital expenditure incurred during 2017 139 Requirement d Cash flow from operations in 2017 ($ Millions) Net income 142 Add: Depreciation 61 Change in Acounts receivable -30 Change in Acounts payable 5 Cash flow from operations in 2017 178
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