Given the following selected information on Cicalese’s Chocolate, Inc., calculate Cash Flow from Operating Activities for 2001.
EAT 600,000 730,000
Depreciation Exp. 100,000 150,000
Dividends 400,000 550,000
Accounts Receivable 1,500,000 2,000,000
Inventory 3,500,000 2,000,000
Accts. Payable/Accr. 350,000 500,000
Long-Term Debt 2,300,000 3,000,000
Common Stock 2,200,000 2,500,000
Retained Earnings 6,150,000 6,350,000
I used the formula EAT + Depreciation +A/R + Inventory + AP accruals but I am not reaching to the correct answer 2,030,000
I calculated the following adjustment and add them up
Depreciation and amortization……………………………………….150,000
Increase in Acc. receivables (2,000,000 – 1,500,000)………….500,000
Decrease in inventories (3,500,000 – 2,000,000)………………….-1,500,000
Increase in Acc payable’s (500,000 – 350,000)………………….150,000 I added (150,000+500,000+1,500,000+150,000)=2,300,000 then I added EAT 730,000 =3,030,000
Would you please let me know where is my mistake that not resulted in 2,030,000
Thanks,
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more