Accounts payable prior year= 3,176

Question

Accounts receivable prior year= 6,886
Accruals prior year= 5,620
Additional paid in capital prior year=19,889
Cash prior year = ?
Common Stock prior year = 2,850
COGS prior year= 22,689.00
Current portion long-term debt prior year= 500
Depreciation expense prior year= 986
Interest expense prior year= 1,255
Inventories prior year= 3,100
Long-term debt prior year= 16,652
Net fixed assets prior year= 75,782
Notes payable prior year= 4,075
Operating expenses prior year= 19,950
Retained earnings prior year= 35,949
Sales prior year= 46,360
Taxes prior year= 350

Accounts payable current year= 5,916
Accounts receivable current year= 9,032
Accruals current year= 6,048
Additional paid in capital current year=13,016
Cash current year = ?
Common Stock current year = 2,850
COGS current year= 18,866
Current portion long-term debt current year= 500
Depreciation expense current year= 954
Interest expense current year= 1,141
Inventories current year= 6,704
Long-term debt current year= 22,002
Net fixed assets current year= 74,208
Notes payable current year= 6,587
Operating expenses current year= 20,000
Retained earnings current year= 34,822
Sales current year= 45,665
Taxes current year= 920

What is the firm's cash flow from financing?

Answer 1

To calculate the cash flow from financing activities, we must consider changes in long-term debt, notes payable, and additional paid-in capital. Cash flows from financing activities generally include the following:

1. Change in Long-Term Debt: This includes any new debt issued minus any repayments.
2. Change in Notes Payable: This includes any increase in short-term liabilities.
3. Change in Additional Paid-In Capital: This includes any new equity issued.

Let's calculate these components based on the provided data:

1. Change in Long-Term Debt:

• Current Year Long-Term Debt (2023) = 22,002
• Prior Year Long-Term Debt (2022) = 16,652
• Change in Long-Term Debt = Current Year - Prior Year
  • Change in Long-Term Debt = 22,002 - 16,652 = 5,350

2. Change in Notes Payable:

• Current Year Notes Payable = 6,587
• Prior Year Notes Payable = 4,075
• Change in Notes Payable = Current Year - Prior Year
  • Change in Notes Payable = 6,587 - 4,075 = 2,512

3. Change in Additional Paid-In Capital:

• Current Year Additional Paid-In Capital = 13,016
• Prior Year Additional Paid-In Capital = 19,889
• Change in Additional Paid-In Capital = Current Year - Prior Year
  • Change in Additional Paid-In Capital = 13,016 - 19,889 = -6,873 (a decrease)

Cash Flow from Financing Activities:

The cash flow from financing activities can now be calculated as follows:

Cash Flow from Financing Activities = Change in Long-Term Debt + Change in Notes Payable + Change in Additional Paid-In Capital

• Cash Flow from Financing Activities = 5,350 + 2,512 - 6,873
• Cash Flow from Financing Activities = 5,350 + 2,512 - 6,873 = -11

Conclusion:

The firm's cash flow from financing activities is -11. This indicates that the firm experienced a net cash outflow in its financing activities over the period.

Answer 2

What is the firm's cash flow from investing?

Answer 3

To calculate the cash flow from investing activities, we need to look at the changes in net fixed assets as well as any investments or sales of long-term assets. For this data set, the relevant information is:

1. Net Fixed Assets at the end of the current year.
2. Net Fixed Assets at the end of the prior year.

Changes in Net Fixed Assets:

• Current Year Net Fixed Assets (2023) = 74,208
• Prior Year Net Fixed Assets (2022) = 75,782

Now, calculate the change in Net Fixed Assets:

\[ \text{Change in Net Fixed Assets} = \text{Current Year Net Fixed Assets} - \text{Prior Year Net Fixed Assets} \] \[ \text{Change in Net Fixed Assets} = 74,208 - 75,782 = -1,574 \]

Interpretation:

• A decrease in net fixed assets indicates that the firm has sold off more assets than it purchased, leading to a cash inflow from investing activities.

Cash Flow from Investing Activities:

Thus, the cash flow from investing activities is:

\[ \text{Cash Flow from Investing Activities} = - \text{Change in Net Fixed Assets} \] \[ \text{Cash Flow from Investing Activities} = -(-1,574) = 1,574 \]

Conclusion:

The firm's cash flow from investing activities is 1,574. This indicates a net cash inflow from investing activities, likely due to the sale of fixed assets exceeding purchases.

Answer 4

What is the firm's total change in cash from the prior year to the current year?

Answer 5

To calculate the total change in cash from the prior year to the current year, we need to determine:

1. Cash flow from operating activities (not yet calculated).
2. Cash flow from investing activities (calculated previously).
3. Cash flow from financing activities (calculated previously).

1. Cash Flow from Operating Activities:

We will calculate the cash flow from operating activities using the following formula:

\[ \text{Cash Flow from Operating Activities} = \text{Net Income} + \text{Depreciation Expense} + \text{Changes in Working Capital} \]

Net Income Calculation:

Net income can be derived using the following:

\[ \text{Net Income} = \text{Sales} - \text{COGS} - \text{Operating Expenses} - \text{Interest Expense} - \text{Taxes} \]

Using the current year figures:

• Sales (current year) = 45,665
• COGS (current year) = 18,866
• Operating Expenses (current year) = 20,000
• Interest Expense (current year) = 1,141
• Taxes (current year) = 920

Let's calculate the net income for the current year:

\[ \text{Net Income} = 45,665 - 18,866 - 20,000 - 1,141 - 920 \] \[ \text{Net Income} = 45,665 - 40,927 = 4,738 \]

Changes in Working Capital:

Working capital is calculated as:

\[ \text{Working Capital} = \text{Current Assets} - \text{Current Liabilities} \]

We need to determine current assets and current liabilities.

Current Assets:

• Accounts Receivable (current year) = 9,032
• Inventories (current year) = 6,704
• Cash (current year) = ? (we will calculate this last)

Total Current Assets: \[ \text{Current Assets} = 9,032 + 6,704 + \text{Cash} \]

Current Liabilities:

• Accounts Payable (current year) = 5,916
• Accruals (current year) = 6,048
• Current Portion of Long-Term Debt (current year) = 500
• Notes Payable (current year) = 6,587

Total Current Liabilities: \[ \text{Current Liabilities} = 5,916 + 6,048 + 500 + 6,587 = 19,051 \]

Working Capital: \[ \text{Working Capital} = (9,032 + 6,704 + \text{Cash}) - 19,051 \]

We can calculate the change in working capital between the prior year and the current year.

• Current Assets Prior Year:

  • Accounts Receivable (prior year) = 6,886
  • Inventories (prior year) = 3,100
  • Cash = ?

• Current Liabilities Prior Year:

  • Accounts Payable (prior year) = 3,176
  • Accruals (prior year) = 5,620
  • Current Portion of Long-Term Debt (prior year) = 500
  • Notes Payable (prior year) = 4,075

• Total Current Assets with cash (prior year) = 6,886 + 3,100 + Cash (prior year)

• Total Current Liabilities (prior year) = 3,176 + 5,620 + 500 + 4,075 = 13,371

We have: \[ \text{Working Capital prior year} = (6,886 + 3,100 + \text{Cash prior year}) - 13,371 \]

Now, to find the change in working capital accurately, we can state:

• Current Assets: \[ \text{Current Assets (current year)} = 9,032 + 6,704 + \text{Cash} \]
• Current Assets (prior year): \[ \text{Current Assets (prior year)} = 6,886 + 3,100 + \text{Cash prior year} \]

Cash Flow from Operating Activities Calculation

Now we also need to calculate the working capital changes, which can be summarized:

• Current Year Working Capital = (9,032 + 6,704 + Cash) - 19,051
• Prior Year Working Capital = (6,886 + 3,100 + Cash_prior_year) - 13,371

We can copy the concluding to cash component afterward.

Cash inflow/outflow if necessary without the working capital changes

2 & 3 : Cash Flow from Investing and Financing

1. Cash Flow from Investing Activities = 1,574 (from previous calculations)
2. Cash Flow from Financing Activities = -11 (from previous calculations)

Total Change in Cash Calculation

We can summarize that:

\[ \text{Change in Cash} = \text{Cash Flow from Operating Activities} + \text{Cash Flow from Investing Activities} + \text{Cash Flow from Financing Activities} \]

\[ \text{Change in Cash} = 4,738 + 1,574 - 11 = 6,301 + Cash. \]

To summarize with solving the cash (prior year) :

Thus, calculating:

\[ \text{Cash (current year), calculated} = \text{Cash (prior year)} + \text{Total change in cash} \]

Then you can decide if Cash for prior year to complete the calculation.

If any cash number available, you can put those in to find overall, else:

• We can calculate cash overall by working through.

Total would be the summary transitioning into finding Cash change; any open questions please feel free to ask!