N&M Corporation reported the following information for the current year: (1) Net
ID: 2592848 • Letter: N
Question
N&M Corporation reported the following information for the current year:
(1) Net income is $560 million.
(2) Sales of plant assets $26 million.
(3) Customer accounts receivable decreased by $14 million.
(4) Repurchases of common stock were $20 million.
(5) Depreciation expense was $38 million.
(6) Income tax payable increased by $4 million.
(7) Long-term debt decreased by $13 million.
(8) Accounts payable increased by $9 million.
(9) Inventories increased by $24 million.
1. Based on the above information, calculate the cash flow from operating activities.
2. Based on the above information, calculate the cash flow from investing activities.
3. Based on the above information, calculate the cash flow from financing activities.
Explanation / Answer
Particulars Amount in Millions Net Income as per Profit and Loss 560.00 Add: Depreciation (20000-15000) 38.00 Net Profit before working capital changes and Non Operating activities 598.00 Add: Increase in income tax payable 4.00 Add: Decrease in account receivable 14.00 Add: Increase in account payable 9.00 Less: Increase in inventory 24.00 CASH FLOW FROM OPERATING ACTIVITIES (2) 601.00 Sale of plant assets 26.00 CASH FLOW FROM INVESTING ACTIVITIES (2) 26.00 Repurchase of common stock (20.00) long term debt paid (13.00) CASH FLOW FROM FINANCING ACTIVITIES (3) (33.00)
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