CH 16. Statement of Cash Flow. Fill the blank
Homework Answers
Solution:
11. Cash flow = -5000*$35 = -$175,000
12. Total amount reported as cash flow = Book value - Loss = $25,000 - $2,000 = $23,000
13. Net cash flows from operating activities = Net income + Amortization of bond discount
= $97,000 + $8,000 = $105,000
14. Cash flow = $2,000,000 * 104% = $2,080,000
15. Cash flow from financing activities section = 25000 * $16 = $400,000
16. False, cash flow per share is not reported on statement of cash flows
17. False, free cash flow is not a measure of profitability.
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