Question

Cash Flow Data for Interceptors, Inc. 2015 2016 2017 2018 Cash $ 54 $ 78 $ 102 $ 126 Cash from operations $ 146 $ 144 $ 141 $ 136 Net capital spending $ 178 $ 173 $ 178 $ 183 Cash from financing $ 56 $ 53 $ 61 What must cash flow from financing have been in 2018 for Interceptors, Inc.?

Answer 1

Answer:

Interceptors, Inc.

Cash flow from financing in 2018:

$71

Explanation:

a) Data and Calculations:

                                        2015        2016        2017         2018

Cash                              $ 54           $ 78        $ 102        $ 126

Cash from operations $ 146         $ 144         $ 141        $ 136

Net capital spending   $ 178         $ 173        $ 178         $ 183

Cash from financing    $ 56          $ 53          $ 61

                                        2015        2016        2017         2018

Cash at the beginning    $30          $54           $78        $102

Cash from operations  $ 146        $ 144         $ 141        $ 136

Cash from financing     $ 56          $ 53          $ 61         $  71

Net capital spending  ($ 178)       ($ 173)       ($ 178)      ($ 183)

Cash                              $ 54          $ 78         $ 102       $ 126

Cash from the beginning for 2015 = (Cash at the end plus net capital spending) minus (Cash from operations plus cash from financing)

= /$30 ($54 + $178) - ($146 + $56)

Cash from financing in 2018 = (Cash at the end plus net capital spending) minus (Cash from operations plus cash at the beginning)

= $71 ($126 + $183) - ($136 + $102)