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Caustic Chemicals management identified the following cash flows as significant

ID: 2660620 • Letter: C

Question

Caustic Chemicals management identified the following cash flows as significant in their year end meeting with analysts: During the year Caustic repaid existing debt of $372,114 and raised additional debt capital of $605,756. It also repurchased stock in the open market for a total of $38,964. What is the net cash provided by financing activities?



Tim Dye, the CFO of Blackwell Automotive, Inc., is putting together this year's financial statements. He has gathered the following balance sheet information: The firm had a cash balance of $23,015, accounts payable of $163,257, common stock of $216,477, retained earnings of $512,159, inventory of $296,261, goodwill and other assets equal to $78,656, net plant and equipment of $710,824, and short-term notes payable of $21,115. It also had accounts receivable of $141,258 and other current assets of $11,223. How much long-term debt does Blackwell Automotive have?



Nimitz Rental Company provided the following information to its auditors. For the year ended March 31, 2011, the company had revenues of $962,589, general and administrative expenses of $284,036, depreciation expenses of $131,455, leasing expenses of $108,195, and interest expenses equal to $78,122. If the company's tax rate is 34 percent. What is the cash flow for Nimitz Rental? (Round intermediate calculations and final answer to the nearest whole dollar, e.g. 5,275.)



Cash flows from creditors and shareholders are considered financing activities. True or False?



Laurel Electronics has a quick ratio of 1.07, current liabilities of $4,131,427, and inventories of $7,282,833. What is the firm

Explanation / Answer

a) net cash flow = 605756-38964-372114= 194678


b)

The basic accounting equation Assets = Liabilities + Equity Assets

cash balance of $23,015

inventory of $296261

goodwill and other assets equal to $78,656,

net plant and equipment of $710824,

accounts receivable of $141,258

other current assets of $11,223.

Total Assets = 1261237


Liabilities accounts payable of $163,257

short-term notes payable of $21,115

Total Liabilities (not including long-term assets) = 184,372


Equity common stock of $216477

retained earnings of $512,159

Total Equity = 728636

728636 + 184,372 = 913008

So in order for the accounting equation to balance, long-term debt must be: 1261237 - 913008 = $348229


c)

A. revenues of $962589,

B. general and administrative expenses of $284036,

C.depreciation expenses of $131,455,

D. leasing expenses of $108,195,

E. interest expenses equal to $78,122.

F. Net Income Before Tax: A - (B+C+D+E) = 360781

G.Tax : 34% of 360781 = 122665.54

H. Net Profit = F-G = 238115.46


G.Cash Flow From Operation = H+C = 369570


d) true


e)


Quick Ratio = (Current Assets - Inventory)/Current Liabilities

let current assest be x

x- 7282833/ 4131427= 1.07

therefore Current Assets (x) = 11703459.89


Current Ratio= Current Assets/Current Liabilities = 11703459.89/4131427 = 2.83



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