Answer:
The firm's operating cash flow is $291000
Explanation:
Operating cash flow is arrived by using the format below:
Net income after tax
Add back dereciation and amortization
Add and (deduct) Reduction in working capital(Increase in working capital)
Add back interest expense on loans
Add back tax expense for the year
Then deduct:
Actual interest paid
Actual tax paid
Using the proforma above,Kerber's Tennis Shop Inc. is shown as:
Net income after tax+Interest expense(add)+reduction in net working capital(add)-increase in creditors' payment(minus)
As a result,operating cash flow=$220000+$91000-$20000
=$291000
Explanation:
Data given in the question
Beginning account receivable = $575,000
Account payable balance = $345,000
Since the account receivable is arise from credit sales where the account payable is arisen from credit purchase
Plus, the income is also increased by considering the account receivable balance while on the other hand, the income can be decreased if account payable is considered
So the net effect is
= $575,000 - $345,000
= $230,000
Since the net income comes in positive so the net income is increased
Answer:
The answer is in my explanation
Explanation:
First I would fix the misplaced characters, and I wouldn't add the last sentence in that way. I would rather write it like this: "To sign up for the workshop respond to this email. Hope to see you soon!" or sth like this to make people motivated about going to the workshop.
