Homework Answers
Step 1:
The statement of cash flow represents the firm's cash outflows from operations, investment and financing activities. Based on the data given information, we can construct the statement of cashflows for Fincrop as under:
| The statement of cash flow(thousands of dollars) | 2019 |
| Cash Flows from operations | |
| Net income | $1350 |
| Depreciation expense | $590 |
| Cash provided by changes in working capital | ($50) |
| Cash flows from operations | $1,230 |
| Cash flows from investments | |
| Gross investment in fixed assets | ($1,320) |
| Cash flows from investments | -1320 |
| Cash flows from financing activities | 410 |
| Net increase(decrease) in cash and cash equivalents | ($500) |
Step 2:
Caluculation of cash provided by changes in working capital is as under:
| Changes in working capital | Amount | Caluculation |
| Decrease(increase) in accounts receivable(a) | -$50 | ($400-$450) |
| Decrease(increase) in inventories(b) | -$50 | ($300-$350) |
| Increase(decrease) in accounts payble(c) | $50 | ($350-$300) |
| Cash provided by changes in working capital (a)+(b)+(c) | -$50 |
Step 3:
Cash flows from investments in terms of Gross investment in fixed assests will be computed as under:
Gross investment in fixed assets=Increase in net fixed assets+depreciation
=$520+$800
Gross investment in fixed assets=$1,320.
Step 4:
Cash flows from financing activities is shown under.
| Cash flows from financing activities | Amount | Calculation |
| Additions to (reductions in) notes payable(a) | -$400 | ($600-$1,000) |
|
Additions to (reductions in) long-term debt(b) |
$400 | ($2,400-$2,000) |
| Dividends paid(c) | -$410 | ($350-$300) |
| Cash flow from financing activities(a)+(b)+(c) | $410 |
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Statement Saved Help Save Problem 3-37 Income versus Cash Flows (L03) The table below contains data...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assetst Long-term debt Notes payable Dividends paid Cash and marketable securities 2018 $4,400...
Problem 3-37 Income versus Cash Flows (L03) The table below contains data on Fincorp Inc. The...
Problem 3-37 Income versus Cash Flows (L03) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $5,700 1,600 430 350 int 500 120 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2017 and 2018, while the income statement items correspond to revenues or expenses during the year ending in either 2017 or 2018. All values are in thousands of dollars. 2017 2018 Revenue $ 4,400 $ 4,500 Cost of goods sold 1,500 1,600 Depreciation 480 500 Inventories 290 320 Administrative expenses 530 580 Interest expense 210 210 Federal and state taxes* 530 550 Accounts...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $4,489 1,500 480 290 530 210 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable Net fixed assetst Long-tern debt Notes payable Dividends...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 2019 Revenue $ 4,200 $ 4,300 Cost of goods sold 1,700 1,800 Depreciation 460 480 Inventories 350 395 Administrative expenses 540 590 Interest expense 110 110 Federal and state taxes* 470 490 Accounts...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $4,100 1,700 470 270 520 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 2018 $5,600...
Problem 3-34 Earnings per Share (L01) The table below contains data on Fincorp Inc. The balance...
Problem 3-34 Earnings per Share (L01) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $5,000 1,800 590 290 540 280 560 280 450 5,700 1,500 990 360 850 2019 $5,100 1,900 610 340 590 280 580 Revenue Cost of goods sold...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $4,700 1,200 520 270 490 290 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the income statement items correspond to revenues or expenses during the year ending in either 201 or 2016. All values are in thousands of dollars. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 2015 $4,000...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assetst Long-term debt Notes payable Dividends paid Cash and marketable securities 2018 $4,400...
Problem 3-37 Income versus Cash Flows (L03) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $5,700 1,600 430 350 int 500 120 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $4,489 1,500 480 290 530 210 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable Net fixed assetst Long-tern debt Notes payable Dividends...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $4,100 1,700 470 270 520 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 2018 $5,600...
Problem 3-34 Earnings per Share (L01) The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $5,000 1,800 590 290 540 280 560 280 450 5,700 1,500 990 360 850 2019 $5,100 1,900 610 340 590 280 580 Revenue Cost of goods sold...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 $4,700 1,200 520 270 490 290 Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends...
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the income statement items correspond to revenues or expenses during the year ending in either 201 or 2016. All values are in thousands of dollars. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes* Accounts payable Accounts receivable Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 2015 $4,000...
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