1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artist 52 [7]
3 years ago
13

The following information has been provided to you by Watts Corporation: Net income $ 175,300 Increase in accounts payable 18,50

0 Increase in inventory 17,500 Increase in accounts receivable 9,700 Increase in bonds payable 75,000 Amortization of bond premium 5,400 Depreciation expense 21,300 Decrease in income taxes payable 7,300 What is Watts Corporation’s net cash flow from operating activities?
Business
1 answer:
Ksju [112]3 years ago
5 0

Answer:

$186,000

Explanation:

Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

Cash flows from operating activities

Net Income                                                            $175,300

Add: Non cash Expense Adjustments:

Depreciation expense                           $21,300

Amortization of bond premium             <u>$5,400 </u>

                                                                               $26,700

Change in Working Capital:                          

Increase in inventory                            ($17,500)

Increase in accounts receivable          ($9,700)

Increase in accounts payable               $18,500

Decrease in income taxes payable      ($7,300)

                                                                              <u>($16,000)</u>

Net Operating Cash flow                                      <u>$186,000</u>

Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

Depreciation and amortization are non cash expenses which was deducted in the calculation of Net income.

Increase in Liability will provide the cash and increase in assets will use the cash.

Increase in Bond Payable is the change in long term liability which is not included in the working capital and it is the part of the cash flow from financing activities.

You might be interested in
The December 31, 2015, balance sheet of Maria’s Tennis Shop, Inc., showed current assets of $1,105 and current liabilities of $9
IrinaK [193]

Answer:

$165

Explanation:

The working capital of organization is the difference between the current assets and the current liabilities of the organization. It shows if a company has enough short term assets or asset that can be converted quickly to cash to settle obligations that will arise in the short term.

Working capital as at December 31, 2015

=$1,105 - $915

=$190

Working capital as at December 31, 2016

=$1,320 - $955

=$365

Change in working capital in 2016

= $365 - $190

= $165

5 0
3 years ago
When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to thi
olga_2 [115]
When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to this as a process of... rational decision making. You just studied 8 terms!
7 0
2 years ago
At the beginning of the year, Kimball Company had total assets of $700,000 and total liabilities of $400,000. If the total asset
svlad2 [7]

Answer:

$ 480 000

Explanation:

Assets : $700 000(@ beginning of year )

$100 000 increase (during year )

700 000+100 000=$800 000(@end of year)

Liabilities : $400 000(@ begininng of year )

$80 000 decrease (@ during of year)

400 000-80 000=$320 000 (@end of year)

Asset = Equity + Liability

Amount of owner’s equity at the end of the year (let x = owners equity)

800 000= x + 320 000

x= 800 000 - 320 000=$480 000

4 0
3 years ago
A company's common stock is selling in the market at a "multiple of 15". If the market price of the common stock is currently $1
Angelina_Jolie [31]

Answer:

earnings per share = $0.67

Explanation:

the earnings per share = stock price / multiple value = $10 / 15 = $0.67

When you read that a stock is selling at a multiple of X, it means that the stock price is currently X times the current earnings per share. In this case, since the stock price is $10, to calculate the EPS you must divide 10 by the multiple value.

4 0
3 years ago
Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions
liberstina [14]

Answer:

April 1 Invested $20,000 cash in her business.

Dr Cash 20,000

    Cr Vera, Ernst, capital 20,000

1 Hired a secretary-receptionist at a salary of $700 per week payable monthly.

no journal entry required

2 Paid office rent for the month $1,500.

Dr Rent expense 1,500

    Cr Cash 1,500

3 Purchased dental supplies on account from Dazzle Company $4,000.

Dr Supplies 4,000

    Cr Accounts payable 4,000

10 Performed dental services and billed insurance companies $5,100.

Dr Accounts receivable 5,100

    Cr Service revenue 5,100

11 Received $1,000 cash advance from Leah Mataruka for an implant.

Dr Cash 1,000

    Cr Deferred revenue 1,000

20 Received $2,100 cash for services performed from Michael Santos.

Dr Cash 2,100

    Cr Service revenue 2,100

30 Paid secretary-receptionist for the month $2,800.

Dr Wages expense 2,800

    Cr Cash 2,800

30 Paid $2,600 to Dazzle for accounts payable due.

Dr Accounts payable 2,600

    Cr Cash 2,600

6 0
3 years ago
Other questions:
  • The firm projected its proforma of financial statements using AFN method and finds that next year its AFN is $2 million. Its tot
    7·1 answer
  • If you want to work in the construction field, what are some of the ways that you could advance your career?
    9·1 answer
  • A downhill ski area is experiencing a decline in the number of lift tickets sold, falling revenues, and inadequate profits. The
    5·1 answer
  • At the end of the month, the department had 12,000 units in inventory, 85% complete as to materials and 60% complete as to conve
    13·1 answer
  • The cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The CFO of the com
    8·1 answer
  • Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optim
    7·1 answer
  • If total spending rises from one year to the next, then Select one: a. either the economy must be producing a larger output of g
    7·1 answer
  • These are selected 2017 transactions for Blue Corporation: Jan. 1 Purchased a copyright for $79,500. The copyright has a useful
    8·1 answer
  • Suppose a​ five-year, bond with annual coupons has a price of and a yield to maturity of . What is the​ bond's coupon​ rate?
    14·1 answer
  • Juno Co. purchased a machine for $10,000 and estimates it will use the machine for three years with a $2,000 salvage value. It e
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!