Homework Answers
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| The correct statement is: |
| Free cash flow from the annual financial statement is an indication of cash available for the bondholders and the shareholders of a firm for that year. |
| Reason: |
| Free cash flow represents the cash generated by the company after paying off its operating liabilities and capital assets. The accountants and investment bankers needs to know the free cash flow amount in order to decide the company's ability to pay off its bond and stockholders. |
| All the other are incorrect because: |
| 1st option |
| 1st option does not make sense. It is not necessary that Cashflow from operations will exceed the fixed asset purchases and net working capital. Many companies have negative free cash flows. |
| 2nd option |
| Change is working capital is a part of calculation of Free Cash flow |
| 3rd option |
| Change is fixed assets purchased is a part of calculation of Free Cash flow |
| 5th option |
| Mangers should be concerned with free cash flow. Accounting net income represent share of creditors and shareholders but its just a book entry. Free cash flow represents a company's ability to pay off its creditors and shareholders in real time. |
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s Question 14 of 29 Question 14 3 points Save an Which of the following statements...
Which of the following statements is CORRECT? a. The current cash flow from existing assets is...
Which of the following statements is CORRECT? a. The current cash flow from existing assets is highly relevant to investors. However, since the value of the firm depends primarily upon its growth opportunities, accounting net income projections from those opportunities are the only relevant future flows with which investors are concerned. b. Interest paid by a corporation is a tax deduction for the paying corporation, but dividends paid are not deductible. This treatment, other things held constant, tends to discourage...
Question 14 (0.2 points) Which of the following rules apply to the financial statements of public...
Question 14 (0.2 points) Which of the following rules apply to the financial statements of public companies in the United States? [SELECT ALL THAT APPLY] Must produce a balance sheet, income statement, statement of cash flows, and statement of stockholders' equity Must be produced according to GAAP, the Generally Accepted Accounting Principles Must be reviewed by an independent auditor
Question 3 10 points Save Answer During the past year, Canyon Buff Corp.'s accounts receivable increased...
Question 3 10 points Save Answer During the past year, Canyon Buff Corp.'s accounts receivable increased by $1,000, inventory increased by $5,000, accounts payable decreased by $3,000, and accumulated depreciation increased by $4,000. The cash effect of changes in net working capital was - dollars over that year. Instruction: Type ONLY your numerical answer in the unit of dollars, NO $ sign needed, No comma sign. Round it to the nearest integer.
questions which are highlighted with highlighter LOS e pay dividends (d) meet obligations 11.14 Free cash...
questions which are highlighted with highlighter
LOS e pay dividends (d) meet obligations 11.14 Free cash flow provides an indication of a company's ability (a) generate profit (b) generate cash to pay dividends (c) generate cash to expand investment 11.16 Which of the following provides a useful comparison with the profit margia? (a) Capital expenditure ratio (b) Cash return on sales ratio. (c) Cash debt coverage (d) Current cash debt coverage LOS QUESTIONS 11.1 What questions about cash are answered...
Reading and Interpreting 5-1 a-f, g1 Exhibits 5.19A and 5.19B contain the consolidated statements of cash...
Reading and Interpreting 5-1 a-f, g1 Exhibits 5.19A and 5.19B contain the consolidated statements of cash flows and related note disclosure for The Second Cup Ltd. EXHIBIT 5.19A The Second Cup Ltd.'s 2016 Statements of Cash Flows STATEMENTS OF CASH FLOWS For the periods ended December 31, 2016 and December 26, 2015 (Expressed in thousands of Canadian dollars) 2016 2015 CASH PROVIDED BY (USED IN) Operating activities $ (975) (1,153) Net loss for the period Items not involving cash Depreciation...
Question 10 (Mandatory) (1 point) Which of the following statements is true? If the new project...
Question 10 (Mandatory) (1 point) Which of the following statements is true? If the new project is riskier than the firm's existing projects, then it should be charged a higher cost of capital. O If the new project is riskier than the firm's existing projects, then it should be charged a lower cost of capital. If the new project is riskier than the firm's existing projects, then it should be charged the firm's cost of capital. The new project's risk...
Digital Bhd Balance Sheet as o' 31 D,cember 2017 2018 milion) nillion) million Cash 300 Fixed ass...
How to do question (b)?
Digital Bhd Balance Sheet as o' 31 D,cember 2017 2018 milion) nillion) million Cash 300 Fixed assets Fixed assets at cost 1.566 (610 2,373 2,718 Acoumulated depreciation Total Assets 6)1.135 1.250 2,055 2.635 Current liabilties Accounts payable Other aceruas Long-term Liablities 10% Debentures de 2000 Total Liabilities 81 20 30 1,000 1,764 701 1,361 Shareholders Equity Common stock, RM 1 par, 100.000,000 shares issued and outstand 100 105 2,535 100 105 344 1,250 Share Premium...
Taking it to the Net A19 BTN 12-3 Access the April 14, 2016, filing of the...
Taking it to the Net A19 BTN 12-3 Access the April 14, 2016, filing of the 10-K report (for year ending December 31, 2015) of Mendocino Brewing Company, Inc. (ticker: MENB) at SEC.gov @ Required 1. Does Mendocino Brewing use the direct or indirect method to construct its consolidated statement of cash flows? 2. For the year ended December 31, 2015, what is the largest item in reconciling the net income (or loss) to net cash provided by operating activities?...
A) ideals to work towards, but which are not achievable B) maximum standards that denote excellent...
A) ideals to work towards, but which are not achievable B) maximum standards that denote excellent work. C) minimum standards of performance that must be achieved on each audit engagement. D) benchmarks to be used on all audits, reviews, and compilations. 8) An audit of historical financial statements most commonly includes the A) balance sheet, statement of retained earnings, and the statement of cash flows B) income statement, the statement of cash flows, and the statement of net working capital...
431428470293373958327&eISBN=9781337911009&id=705774549&snapshotid=15798828 mnts, Cash Flow, and Taxes Comprehensive/Spreadsheet Problem 3-19. FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho...
431428470293373958327&eISBN=9781337911009&id=705774549&snapshotid=15798828 mnts, Cash Flow, and Taxes Comprehensive/Spreadsheet Problem 3-19. FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries's 2018 and 2019 balance sheets (in thousands of dollars) are shown. 2019 2018 Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets $102,850 103,365 38,444 $244,659 67,165 $311 824 $ 89,725 85,527 34,982 $210,234 42,436 $252,670 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $...
Question 14 (0.2 points) Which of the following rules apply to the financial statements of public companies in the United States? [SELECT ALL THAT APPLY] Must produce a balance sheet, income statement, statement of cash flows, and statement of stockholders' equity Must be produced according to GAAP, the Generally Accepted Accounting Principles Must be reviewed by an independent auditor
questions which are highlighted with highlighter
LOS e pay dividends (d) meet obligations 11.14 Free cash flow provides an indication of a company's ability (a) generate profit (b) generate cash to pay dividends (c) generate cash to expand investment 11.16 Which of the following provides a useful comparison with the profit margia? (a) Capital expenditure ratio (b) Cash return on sales ratio. (c) Cash debt coverage (d) Current cash debt coverage LOS QUESTIONS 11.1 What questions about cash are answered...
Reading and Interpreting 5-1 a-f, g1 Exhibits 5.19A and 5.19B contain the consolidated statements of cash flows and related note disclosure for The Second Cup Ltd. EXHIBIT 5.19A The Second Cup Ltd.'s 2016 Statements of Cash Flows STATEMENTS OF CASH FLOWS For the periods ended December 31, 2016 and December 26, 2015 (Expressed in thousands of Canadian dollars) 2016 2015 CASH PROVIDED BY (USED IN) Operating activities $ (975) (1,153) Net loss for the period Items not involving cash Depreciation...
Question 10 (Mandatory) (1 point) Which of the following statements is true? If the new project is riskier than the firm's existing projects, then it should be charged a higher cost of capital. O If the new project is riskier than the firm's existing projects, then it should be charged a lower cost of capital. If the new project is riskier than the firm's existing projects, then it should be charged the firm's cost of capital. The new project's risk...
How to do question (b)?
Digital Bhd Balance Sheet as o' 31 D,cember 2017 2018 milion) nillion) million Cash 300 Fixed assets Fixed assets at cost 1.566 (610 2,373 2,718 Acoumulated depreciation Total Assets 6)1.135 1.250 2,055 2.635 Current liabilties Accounts payable Other aceruas Long-term Liablities 10% Debentures de 2000 Total Liabilities 81 20 30 1,000 1,764 701 1,361 Shareholders Equity Common stock, RM 1 par, 100.000,000 shares issued and outstand 100 105 2,535 100 105 344 1,250 Share Premium...
Taking it to the Net A19 BTN 12-3 Access the April 14, 2016, filing of the 10-K report (for year ending December 31, 2015) of Mendocino Brewing Company, Inc. (ticker: MENB) at SEC.gov @ Required 1. Does Mendocino Brewing use the direct or indirect method to construct its consolidated statement of cash flows? 2. For the year ended December 31, 2015, what is the largest item in reconciling the net income (or loss) to net cash provided by operating activities?...
A) ideals to work towards, but which are not achievable B) maximum standards that denote excellent work. C) minimum standards of performance that must be achieved on each audit engagement. D) benchmarks to be used on all audits, reviews, and compilations. 8) An audit of historical financial statements most commonly includes the A) balance sheet, statement of retained earnings, and the statement of cash flows B) income statement, the statement of cash flows, and the statement of net working capital...
431428470293373958327&eISBN=9781337911009&id=705774549&snapshotid=15798828 mnts, Cash Flow, and Taxes Comprehensive/Spreadsheet Problem 3-19. FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries's 2018 and 2019 balance sheets (in thousands of dollars) are shown. 2019 2018 Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets $102,850 103,365 38,444 $244,659 67,165 $311 824 $ 89,725 85,527 34,982 $210,234 42,436 $252,670 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $...
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