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horrorfan [7]
3 years ago
9

The 2018 balance sheet of Speith’s Golf Shop, Inc., showed long-term debt of $5 million, and the 2019 balance sheet showed long-

term debt of $5.25 million. The 2019 income statement showed an interest expense of $165,000. The 2018 balance sheet showed $510,000 in the common stock account and $4.6 million in the additional paid-in surplus account. The 2019 balance sheet showed $550,000 and $4.8 million in the same two accounts, respectively. The company paid out $410,000 in cash dividends during 2019. Suppose you also know that the firm’s net capital spending for 2019 was $1,370,000, and that the firm reduced its net working capital investment by $69,000. What was the firm's 2019 operating cash flow, or OCF?
Business
1 answer:
viva [34]3 years ago
3 0

Answer:

$1,386,000

Explanation:

The computation of the operating cash flow is shown below:

But before that following calculations must be done

Cash Flow to Creditors

Cash Flow to Creditors = Interest Expenses Paid - Net Increase in Long term debt

= Interest Expenses Paid - [Ending Long term debt  - BEginning Long term Debt]

= $165,000 - [$5,250,000 - $5,000,000]

= $165,000 - $250,000

= -$85,000

Cash Flow to Stockholders

Cash Flow to Stockholders = Dividend Paid - Net New Equity

= Dividend Paid - [(Ending Common stock  + Ending Additional paid-in surplus account ) - (Opening Common stock  + OPening Additional paid-in surplus account )

= $410,000 - [($550,000 + $4,800,000) - ($510,000 + $4,6000,000)]

= $410,000 - [$5,350,000 - $5,110,000]

= $410,000 - $240,000

= $170,000  

Cash Flow from assets

Cash Flow from assets = Cash Flow to Creditors + Cash Flow to Stockholders

= -$85,000 + $170,000

= $85,000

Operating Cash Flow  

= Operating Cash flows - Change in Net Working capital - Net Capital Spending

$85,000 = Operating cash flow - (-$69,000) - $1,370,000

= $85,000 - $69,000 + $13,70,000

= $1,386,000

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wlad13 [49]

The total weight of the chicken is 9\frac{5}{48} kg.

The total weight of the chickens can be determined by adding the weights of the five chickens together.

Addition is a basic mathematical operation that is carried out by adding two or more numbers together.

Total weight = 1\frac{3}{4} + 2\frac{1}{8} + 1\frac{1}{3} + 1\frac{2}{5} + 2\frac{1}{2}

7\frac{720 + 120 + 320 + 384 + 480}{960}

7 \frac{2020}{960}

9\frac{5}{48} kg

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7 0
2 years ago
By shutting​ down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou
wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period  are paid at a later period. Thus option B is incorrect.

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Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost.  Hence option C is incorrect.

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Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its   sunk cost. Hence option D is incorrect.

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Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

4 0
3 years ago
Which of the choices is an example of offshore outsourcing?
Alexxx [7]

Answer:

None of the choices describe offshore outsourcing.

Explanation:

Offshore outsourcing is when a company hires a third party in another country to do some tasks for the company.

4 0
3 years ago
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Record the entry to close the income summary assuming the partners agree to use plan c and net income is $460,500
slava [35]

The entry is record in book as

Date Particular                L.F.     Dr. Amt.        Cr. Amt.

Income summary a/c             $460,500  

To Mo a/c                                          $69,300

To Lu a/c                                          $269,500

To Barb a/c                                          $431,200

What is net income?

The total amount of firm profit after deducting all taxes, costs, and interest is referred to as "net income."

Particulars                 Mo           Lu                 Barb

Capital invested        $69,300    $269,500  $431,200

Profit sharing ratio 20/100   40/100         40/100

Profit ($460,500)         92100    184200 184200

As a result,  Mo is  92100;  Lu is 184200; Barb is 184200 as profit.

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4 0
2 years ago
If an account has a credit balance it means​
Brums [2.3K]

Answer:

If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you. You can call your card issuer and arrange to have a check sent to you in the amount of the credit balance.

Explanation:

Hope this help!!

6 0
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