Question

Using the data in the previous question and prepare Free Cash flow, if you know that gross fixed assets was in the previous year 250,000$. And the net working capital was 110,000$? You need some data from the following table. D) The cost of goods sold to customer $220,000 2) Advertising expenses $ 25,000 3) Administrative salary expenses $ 80,000 4) Issued common stock $ 75,000 5) Interest income $ 10,000 6) Insurance expense $ 4,000 7) Research and development costs $ 22,000 8) Dividends paid $ 15,000 9) Tax expense 35% 10) Rent expense $ 12,000 12) Accrued expenses $ 11,000 13) Sales price of goods provided to customers $450,000 14) Depreciation Expense 15,000$

Answer 1

the solution as follows

Cash flow stutement $ 450.000 220.000 25000 80 DDO. Cash From operating Activities Sales. Less! Cast of Good hold. Advertisement Administrative salary Repriti 15000 Reserch and Development 12000 4000 Cash from operating Before Tax Lets tax at 351. Iwosting Note B) Cash From Smuesting Activities, i sve of common stock Hividend paid. Interest rent insurance 356000 94000 27300 940oo. 66700 75000 (15.000) 10. DOO 70,000. in came . 136700 Cashflow 450.000 Tap is Calculation of im lane tax working Note Tuxuble prefit & & 온 Sales Less: Coht of Good rold 220,000. Advertisement salary rent # insurance 2500 80.no. 3570m 78000. 27300 Relarch and developmet 15000 1 2000 4000 15 000 11000 Mephiliation #crueed expense Add income form interest 362000 68000 10000 78000 CS Scanned with CamScanner

here accrued expenses belongs to this year hence tax deductable item

depriciation is also tax dedutable item

incom from interest is taxable income

here taxable income is $ 78000

here previous year balances is not necessary unless provide current year same items to prepare cashflow statement.

thank you...