For Shake Shake Inc, Free cash flows in year 2018= cash flow from operating activities - capital...
For Shake Shake Inc,
- Free cash flows in year 2018= cash flow from operating activities - capital expenditures = 85,395,000 – 87,525,000 = $ - 2,130,000
Why is the free cash flows a negative number in 2018 and what does it mean?
Is this company the sort of company that will probably have to raise external funds in order to operate in year 2019?
If it needs to raise external funds, how do you think it will raise the additional money?
Homework Answers
The free cash flow is negative because the company will not be able to meet its cash expenditures from its operations.
In the given case, the company shall finance $ 2,130,000 from the external sources in order to meet its capital expenditure obligations.
It can raise external funds from following sources-
1) Issue of common stock
2) Issue of bonds
3) Bank Borrowings
4) Issue of Preferred stock
and so on...
Add Answer to:
For Shake Shake Inc,
Free cash flows in year 2018= cash flow from
operating activities - capital...
On its Statement of Cash Flows, Athena, Inc. reported cash flow from operating activities of $101,000,...
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Net income for the year for Crane, Inc. was $747,070, but the statement of cash flows...
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For the Year Ended December 31, 2020 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flow from operating activities Cash Flows from Investing Activities Net cash flow from investing activities Cash Flows from Financing Activities Net cash flow from financing activities Cash at the beginning of the period Cash at the end of the period The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided...
For the Year Ended December 31, 2017 Cash flows from operating activities $86,081 Net income Adjustments...
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Determining Net Income from Net Cash Flow from Operating
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Curwen Inc. reported net cash flow from operating activities of
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Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
STATEMENT OF CASH FLOWS FOR 2017 Cash Flow from Operating Activities Cash Flow from Investing Activities...
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Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net
Increase in Cash
Beginning
Cash Balance
Ending Cash
Balance
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cash flows from operating activities - indirect method the net income reported Cash Flows from Operating...
cash flows from operating activities - indirect method the net
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Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $116,900. Depreciation recorded on store equipment for the year amounted to $19,300. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $47,810 $43,510 34,280 32,150 48,950 Accounts receivable (net)...
On its Statement of Cash Flows, Athena, Inc. reported cash flow from operating activities of $101,000, cash flow from financing activities of ($124,000), and cash flow from investing activities of S105,000. Athena, Inc. invested S65,000 cash in long term assets. Athena, Inc.'s free cash flow is: O A. $40,000 OB. $17,000 OC. $59,000. OD. $36,000.
Net income for the year for Crane, Inc. was $747,070, but the statement of cash flows reports that net cash provided by operating activities was $871,490. Crane also reported capital expenditures of $71,670 and paid dividends in the amount of $28,490. Compute Crane's free cash flow. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Free cash flow $
For the Year Ended December 31, 2020 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flow from operating activities Cash Flows from Investing Activities Net cash flow from investing activities Cash Flows from Financing Activities Net cash flow from financing activities Cash at the beginning of the period Cash at the end of the period The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided...
For the Year Ended December 31, 2017 Cash flows from operating activities $86,081 Net income Adjustments to reconcile net income to net cash provided by operating activities: $13,277 Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in accounts payable Loss on disposal of plant assets 13,861 (7,295) (3,210) 4,815 21,448 107,529 Net cash provided by operating activities Cash flows from investing activities Sale of investments 4,523 Purchase of equipment (35,308) Net cash used by investing activities (30,785) Cash...
Determining Net Income from Net Cash Flow from Operating
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Curwen Inc. reported net cash flow from operating activities of
$196,600 on its statement of cash flows for the year ended December
31. The following information was reported in the Cash Flows from
Operating Activities section of the statement of cash flows, using
the indirect method:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
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Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net
Increase in Cash
Beginning
Cash Balance
Ending Cash
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Selected financial statement information and additional data for Stanislaus Co. is presented below 2017 $64,200 143,800 Cash Accounts receivable (net) Inventory Land Equipment TOTAL 2016 $41,610 85,190 168,040 55,130 508,180 $858,150 203,770 18,620 791,360 $1,221,750 $81,340 $113,560 Accumulated depreciation Accounts payable Notes payable - short-term 85,250 50,590 66,800 29,460...
cash flows from operating activities - indirect method the net
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