Ch2-Q20. Accounting Values versus Cash Flows. In Problem 19, suppose Belyk Paving Co. paid out $420,000 in cash dividends. Is this possible? If net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year, what do you know about the firm's long-term debt account?
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- A company has the following information: Earnings before interest and taxes Interest expense $140.00 12.00 40% 10.00 12.00 Tax rate Net change in debt Investment in total capital What is its free cash flow to equity? Do not round intermediate calculations. Round your answer to the nearest cent.19. Ebasan Company have the following account balances: Cash (net of overdraft of P100,000) Accounts receivable Accounts payable Notes payable Loans payable Income tax payable Warranty obligations Deferred revenue Cumulative, redeemable preference shares at the option of the holder Non-cumulative, non-redeemable preference shares What is the total amount considered as financial liabilities? A. 4,620,000 B. 3,620,000 C. 4,600,000 D. 4,500,000 P300,0000 450,000 1,200,000 500,000 1,800,000 120,000 180,000 240,000 1,000,000 2,000,000Poh Inc., corporation, has the following pertinent information happened during year 2022 P 1,570,000 100,000 Net income Depreciation Dividends paid Increase in accounts receivable, net Decrease in inventory Increase in trading securities Decrease in prepaid insurance Unrealized gain on trading securities Decrease in accounts payable Increase in income tax payable Cash payment for equipment Cash payment for short-term borrowing Proceeds from long-term investments Proceeds from long-term borrowings Proceeds from issuance of share capital 40,000 520,000 460,000 50,000 15,000 5,000 240,000 120,000 250,000 300,000 280,000 1,000,000 750,000 Required: Prepare Statement of Cash Flows using indirect method
- a)Assume that the following data is extracted from the financial statements of Richy-Rich bank: equity is $350 million, interest expense is $115 million, provision for loan loss (P) is $35 million, noninterest income is $30 million, noninterest expense is $50 million and a tax rate is 33%. What is the minimum total interest income required to give a return on equity (ROE) of 20%? Show workings when necessary. b) Be-smart Bank reported an equity multipler ratio of 6.5 at the end of year 2021. If the bank’s total debt at the end of year 2021 was $5 million, how much of its assets were financed with equity? Show calculations when necessary. c) What are the main sources of funding for commercial banks? Using bullet points, classify these sources and briefly describe each category.Q1.From the following information prepare a 'cash flow statement' for Ronak Ltd. Balance sheet of Ronak Ltd as at 31st March, 2011 and 2012. Note 31st March. No. A Man 2012 () Particulars 2011 () L EQUITY AND LIABILTIES 1. Shareholders' Funda (a) Equity Share Capital (b) Reserves and Surplus 2. Non-current Linbilities Long-term Borrowings (12% debentures) 3. Current Liabilition 2.50.000 3,50,000 40,000 5,000 60,000 1, 00,000 1,25.000 5,80,000 Trade Payables 1,50,000 Total 5,00,000 IL. ASSETS 1. Non-current Asseta ial Fixed Assets 2,00,000 2,80,000 (b) Nan-current Investments 1,00,000 1,00.000 2. Current Assets 1,60,000 40.000 1,50,000 la) Trade Receivables (bị Cash and Cash Equivalents lel Other Current Assets (Prepaid expenses) 30,000 20,000 5,00,000 5,80,000 Total Notes to Accounts 31st March, 31st March, 2011 () Particulars 2012 () 1. Reserves and Surplus Surplus, ie. Balance in Statement of Profit and Loss Securities Premium Reserve 40,000 (20,000) 25,000 40,000 5.000Category. Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 429,735.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 55,152.00 Interest expense 40,500 42,662.00 Inventories 279,000 288,000 Long-term debt 339,349.00 400,985.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 161,641.00 Retained earnings 306,000 342,000 Sales 639,000 848,846.00 Тахes 24,750 47,931.00
- sources and Uses of Cash. How would each ofthe following events would affect the firm's balancesheet. State whether each change is a source or useof cash. (LO3)d.The firm repurchases its own common stock.e.The firm pays its quarterly dividend.f. The firm issues $1 million of long-term debt anduses the proceeds to repay a short-term bank loan.f. ABC Bank has the following balance sheet (in millions) and has no off-balance-sheet exposure. Assets Liabilities and Equity Cash $20 Deposits $960 Treasury bills 40 Subordinated debt 25 Residential mortgages Common stock 45 Business loans 430 Retained earnings 40 Total assets $1,090 Total liabilities and equity $1.090 Total Risk Weighted Assets are $730. i) What is the Tier 1 risk-based capital ratio? ii) What is the Capital Adequacy Ratio (CAR)? iii) What is the Tier 1 leverage ratio?Will Inc. provided the following information at year-end: Cash and cash equivalents..... Accounts receivable, net of P 1000,000 allowance. .P 500,000 2,000,000 Inventory.. Property, plant and equipment, net. Accounts payable. Wages payable. Share capital.. Share premium. • The only asset not listed is its short-term investments of P 500,000. • The only liabilities not listed are a P 3,000,000 notes payable due in 2 years and the 6,000,000 12,000,000 4,400,000 1,500,000 6,000,000 4,000,000 related accrued interest of P 100,000 due in 4 months. How much is the current liabilities as of December 31, 2021?
- Q.2. You are presented with the following information relating to Betty's Inc for the year to 31 March 2018: Bank overdraft 500 Called-up share capital (issued and fully paid) 2,100 Corporation tax (based on the profit for the year to 31 March 2018) 900 Accounts payable 300 Accounts receivable 200 Deferred taxation (credit) 80 Non-current assets: at cost 3,800 accumulated depreciation (at 31 March 2018) 1,400 Non-current asset investments: at cost 100 Retained profits (at 1 April 2017: credit) 1,200 Proposed dividend 420 Retained profit (for the year to 31 March 2018) 585 Share premium account 315 Inventory: at cost (at 31 March 2018) 400 Trade accounts payable 2,000 Trade accounts receivable 5,300 Required: In so far as the information permits, prepare Betty's Inc statement of financial position as at 31 March 2018 in accordance with the minimum requirements of the relevant accounting standards.Alanta Corporation reported the following information for Year 7 and Year 6. Operating assets Operating liabilities Net cash flow from operations Net operating profit after tax (NOPAT) Discount factor December 31 Select one: What are the company's free cash flows to the firm (FCFF) for Year 7? O Year 7 Year 6 $131,281 $122,569 96,628 91,869 37,367 31,632 26,697 25,394 6% 6% a. None of these are correct b. $20,962 c. $33,414 d. $30,650 e. $22,744Required: (a) Prepare a cash flow statement for Chamber Corp for the year ended 31 December 2021. (b) Reply to the following questions put to you by one of the directors of the company: 'Can you please explain to me how we have a healthy profit yet our bank overdraft has reached a record level? Surely there must be something wrong with the profit calculations.'