Anderson Corporation had $3,000,000 in the bank at the end o…
Anderson Corporation had $3,000,000 in the bank at the end of the prior year, and its working capital accounts except cash and notes payable remained constant during the year. Notes payable increased by $50,000. It earned $3 million in net income during the year but paid $500,000 in dividends to common shareholders. Throughout the year, the firm purchased $2.2 million of machinery . Anderson Corporation had an annual depreciation expense for the year of $550,000; note that the $2.2 million purchase amount for the machinery above represents a change to property, plant, and equipment before depreciation. Finally, you have determined that the only long-term financing done by the firm was to repay long-term debt of $150,000 at a 4% interest rate. a. What was the firm’s end-of-year cash balance? Recreate the firm’s cash flow statement to arrive at your answer. b. If instead, the sale amount for the machinery above represented a change to property, plant, and equipment after depreciation, what would have been your cash flow from investing activity?
Anderson Corporation had $3,000,000 in the bank at the end o…
Questions
Andersоn Cоrpоrаtion hаd $3,000,000 in the bаnk at the end of the prior year, and its working capital accounts except cash and notes payable remained constant during the year. Notes payable increased by $50,000. It earned $3 million in net income during the year but paid $500,000 in dividends to common shareholders. Throughout the year, the firm purchased $2.2 million of machinery . Anderson Corporation had an annual depreciation expense for the year of $550,000; note that the $2.2 million purchase amount for the machinery above represents a change to property, plant, and equipment before depreciation. Finally, you have determined that the only long-term financing done by the firm was to repay long-term debt of $150,000 at a 4% interest rate. a. What was the firm’s end-of-year cash balance? Recreate the firm’s cash flow statement to arrive at your answer. b. If instead, the sale amount for the machinery above represented a change to property, plant, and equipment after depreciation, what would have been your cash flow from investing activity?
Andersоn Cоrpоrаtion hаd $3,000,000 in the bаnk at the end of the prior year, and its working capital accounts except cash and notes payable remained constant during the year. Notes payable increased by $50,000. It earned $3 million in net income during the year but paid $500,000 in dividends to common shareholders. Throughout the year, the firm purchased $2.2 million of machinery . Anderson Corporation had an annual depreciation expense for the year of $550,000; note that the $2.2 million purchase amount for the machinery above represents a change to property, plant, and equipment before depreciation. Finally, you have determined that the only long-term financing done by the firm was to repay long-term debt of $150,000 at a 4% interest rate. a. What was the firm’s end-of-year cash balance? Recreate the firm’s cash flow statement to arrive at your answer. b. If instead, the sale amount for the machinery above represented a change to property, plant, and equipment after depreciation, what would have been your cash flow from investing activity?
Andersоn Cоrpоrаtion hаd $3,000,000 in the bаnk at the end of the prior year, and its working capital accounts except cash and notes payable remained constant during the year. Notes payable increased by $50,000. It earned $3 million in net income during the year but paid $500,000 in dividends to common shareholders. Throughout the year, the firm purchased $2.2 million of machinery . Anderson Corporation had an annual depreciation expense for the year of $550,000; note that the $2.2 million purchase amount for the machinery above represents a change to property, plant, and equipment before depreciation. Finally, you have determined that the only long-term financing done by the firm was to repay long-term debt of $150,000 at a 4% interest rate. a. What was the firm’s end-of-year cash balance? Recreate the firm’s cash flow statement to arrive at your answer. b. If instead, the sale amount for the machinery above represented a change to property, plant, and equipment after depreciation, what would have been your cash flow from investing activity?
7. Frаu Wаllner hаt am nachmittag eine Besprechung.