- C E F G H M N D Net Income 0 35 714 Add Depreciation Expense Decrease In Inventory Increase In Accounts Payable Subtota 1 (49.19 KiB) Viewed 34 times
What was the company ́s free cash flow in 2021?
What were the major sources of cash from financing activities
during 2021? Did the net
effect of financing activities result in an increase or a
decrease in cash during the year?
What happened to the total amount of cash and cash equivalents
during the year?
Assuming 2021 was a typical year, is the firm in a position to
continue its dividend
payments in the future? Explain
Look at the reconciliation of net income to net cash provided by
operating activities, and
explain the following:
Net loss (gain) from the sale of marketable securities
Increase in accounts receivable
SUBJECT : ACCOUNTING
C E F G H M N D Net income 0 35 714 Add: Depreciation expense Decrease in inventory Increase in accounts payable Subtotal 8 571 714 1429 10 714 Less: Increase in accounts receivable Decrease in accrued expenses payable Gain on sales of marketable securities Subtotal 1429 2 143 2 857 6 429 Net cash provided by operating activities 40 000 Cash flows from INVESTING ACTIVITIES Proceeds from sales of marketable securities Cash paid to acquireplant assets (see more explanation below **) 5 000 -4 286 ** 714 Net cash provided by investing activities Cash flows from FINANCING ACTIVITIES Dividends paid Payments to retire bonds payable -20 000 -21 429 Net cash used for financing activities 41 429 -714 NET DECREASE IN CASH Cash and equivalents January 1, 2021 Cash and equivalents December 31, 2021 7 143 6 429 ** Suplementary schedule Purchases of plant assets Less portion financed through issuance of long term debt Cash paid to acquire plant assets 14 286 10 000 4 286 **