Given the following selected information on Cicalese’s Chocolate, Inc., calculat
ID: 2651674 • Letter: G
Question
Given the following selected information on Cicalese’s Chocolate, Inc., calculate Cash Flow from Operating Activities for the year 20X1.
Dec 31, 20X0
Dec 31, 20X1
EAT
$ 600,000
$ 750,000
Depreciation Exp.
100,000
110,000
Dividends
400,000
550,000
Accounts Receivable
1,500,000
2,000,000
Inventory
3,500,000
2,000,000
Accts. Payable/Accr.
350,000
500,000
Long-Term Debt
2,300,000
3,000,000
Common Stock
2,200,000
2,500,000
Retained Earnings
6,150,000
6,350,000
Dec 31, 20X0
Dec 31, 20X1
EAT
$ 600,000
$ 750,000
Depreciation Exp.
100,000
110,000
Dividends
400,000
550,000
Accounts Receivable
1,500,000
2,000,000
Inventory
3,500,000
2,000,000
Accts. Payable/Accr.
350,000
500,000
Long-Term Debt
2,300,000
3,000,000
Common Stock
2,200,000
2,500,000
Retained Earnings
6,150,000
6,350,000
Explanation / Answer
Answer:-
Cicalese's chocolate Inc. Cash flow statement Particulars Amount Cash flow from operating activites Net income Retained earning (6350000 - 6150000) $200,000 Earning after tax (750000 - 650000) $150,000 $350,000 Add- Non cash expenses Depreciation $10,000 $10,000 Add- decrease in current assets Inventory $1,500,000 $1,500,000 Add- Increase in current liabilites $150,000 $150,000 less- Increase in current assets Account receivable ($500,000) ($500,000) net cash flow from operating activities $1,510,000Related Questions
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