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Given the financial data for New Electronic World, Inc. (NEW), compute the follo

ID: 2700842 • Letter: G

Question

Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended Dec. 31, 2010.



(a) Operating Cash Flow


(b) Free Cash Flow



For the year ended December 31,



Depreciation


2009


2010 $3,000



EBIT


2009


2010 $30,000



Interest Expenses


2009


2010 $3,000



Taxes


2009


2010 $8,000



Cash


2009 $21,000


2010 $24,000



Accounts Receivable


2009 $39,000


2010 $45,000



Inventory


2009 $27,000


2010 $30,000



Net Fixed Assets


2009 $22,000


2010 $24,000



Accounts Payable


2009 $25,000


2010 $30,000



Notes Payable


2009 $50,000


2010 $40,000



Accruals


2009 $1,000


2010 $2,000


Explanation / Answer

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