157_634714809867753532_MRyan_Co._20x9_new_Winter_10

Statement of cash flows for the year ended december

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Unformatted text preview: Adjustments to Net Income: Add: Depreciation Expense Changes in: Increase in Net Accounts Receivable Increase in Inventory Increase in Prepaid Rent Increase in Accounts Payable Increase in Salary Payable Decrease in Rent Payable Increase in Taxes Payable Cash Provided by Operating Activities Investing Activities Purchase of Equipment Cash Used for Investing Activities Financing Activities Payment on Long-Term Debt Payment of Dividends Cash Used for Financing Activities Increase in Cash Beginning Cash Balance, December 31, 20x4 Ending Cash Balance, December 31, 20x5 Supplemental cash flow information Cash payments for income taxes Cash payments for interest Noncash investing and financing activities Exchanged 40,000 shares of common stock for a piece of land. $87,577 10,000 (9,110) (90,000) (1,000) 100,000 2,000 (2,000) 15,767 113,234 (10,000) (10,000) (20,000) (13,000) (33,000) 70,234 50,000 $120,234 $21,767 8,000 40,000 MRyan Ratios Price/Earnings Ratio = Accounts Receivable Turn = Average Collection Period = Inventory Turn = Return on Assets = Debt/Equity Ratio = Return on Equity = Current Ratio = $60.00 / $0.85 = 70.79 The stock is selling at over 70 times earnings, which is very high. If you pay $60 for a share of stock in this company and earnings remain constant, you would be earning only 1.41% annually on your investment. You can earn more in a fully insured bank savings account. $280,000 / (...
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