I’m trying to study for my Accounting course and I need some help to understand this question.
Chapter 3 Problems: 2,3,12,14 (a,b,c)
Prepare cash flow statement of the integrated case in excel and turn in. (Your job is to recreate the statement of cash flow using information from income statement and balance sheet. I have loaded both statements to excel file (called 03 case format ), but left the statement of cash flow blank. All the information is based on the Integrated Case, D’Leon Inc, Part 1 (Problem 3-20 of chapter 3). In fact, the case also provides you statement of cash flow, but you need to get the numbers yourself in excel by using the numbers from income statement and balance sheet.
Submit the finished excel file as part of your homework. )
2.) INCOME STATEMENT Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and fill in the known values. Then divide $3 million of net income by (1-T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.]
3.) INCOME STATEMENT Pearson Brothers recently reported an EBITDA of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
12.) STATEMENT OF CASH FLOWS W.C. Cycling had $55,000 in cash at year-end 2014 and $25,000 in cash at year-end 2015. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing activities totaled +$170,000.
a. What was the cash flow from operating activities?
b. If accruals increased by $25,000, receivables and inventories increased by $100,000, and depreciation and amortization totaled $10,000, what was the firm’s net income?
14.) Picture attached to this question. Please only answer a, b, and c.
20.) Picture attached and please use the provided excel document (instructions above) to answer this.
Questions 2, 3, 12, and 14 (a,b,c) can be answered in Microsoft Word.
Question 20 has to be answered in the ATTACHED excel file.
Thank you in advance!!!