Obermeyer Corporation issued the following statement of cash flows for 2014. (a) Compute free cash flow for
Question:
Obermeyer Corporation issued the following statement of cash flows for 2014.
(a) Compute free cash flow for Obermeyer Corporation.
(b) Explain why free cash flow often provides better information than “Net cash provided by operating activities.”
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
Transcribed Image Text:
OBERMEYER CORPORATION Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2014 Cash flows from operating activities $59,000 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Loss on disposal of equipment Increase in inventory Decrease in accounts receivable $ 9,100 9,500 (5,000) 3,300 (2,200) Decrease in accounts payable 14,700 Net cash provided by operating activities Cash flows from investing activities Sale of investments 73,700 3,100 (27,000) Purchase of equipment Net cash used by investing activities (23,900) Cash flows from financing activities Issuance of stock 20,000 (10,000) Payment on long-term note payable Payment for dividends (15,000) Net cash used by financing activities (5,000) Net increase in cash 44,800 13,000 Cash at beginning of year Cash at end of year $57,800
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
a Free cash flow 73700 27000 15000 31700 b Cash provided by operating activiti...View the full answer
Answered By
Muhammad Ahtsham Shabbir
I am a professional freelance writer with more than 7 years’ experience in academic writing. I have a Bachelor`s Degree in Commerce and Master's Degree in Computer Science. I can provide my services in various subjects.
I have professional excellent skills in Microsoft ® Office packages such as Microsoft ® Word, Microsoft ® Excel, and Microsoft ® PowerPoint. Moreover, I have excellent research skills and outstanding analytical and critical thinking skills; a combination that I apply in every paper I handle.
I am conversant with the various citation styles, among them; APA, MLA, Chicago, Havard, and AMA. I also strive to deliver the best to my clients and in a timely manner.My work is always 100% original. I honestly understand the concern of plagiarism and its consequences. As such, I ensure that I check the assignment for any plagiarism before submission.
4.80+
392+ Reviews
587+ Question Solved
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted:
Students also viewed these Managerial Accounting questions
-
Sam Wilson often goes to the horse races, participates in his states lottery, and invests heavily in the stock of major U.S. companies. At work, Wilson is approached by his coworkers and asked to...
-
Obermeyer Corporation issued the following statement of cash flows for 2019. (a) Compute free cash flow for Obermeyer Corporation. (b) Explain why free cash flow often provides better information...
-
Obermeyer Corporation issued the following statement of cash flows for 2020. (a) Compute free cash flow for Obermeyer Corporation. (b) Explain why free cash flow often provides better information...
-
An order book displays the following information for stock ABC: Bid Shares 200 100 300 200 Price 25.76 25.66 25.62 25.54 Ask Price 25.82 25.94 25.98 26.06 Shares 100 200 200 400 What is the total...
-
Find the absolute and percent relative uncertainty and express each answer with a reasonable number of significant figures. (a) 6.2 ( 0.2) - 4.1 ( 0.1) = ? (b) 9.43 ( 0.05) 0.016 ( 0.001) = ? (c)...
-
Which of the following are private goods and might, therefore, be provided in socially optimal amounts by private profit-maximizers? Which are public goods and should, therefore, be provided by the...
-
You want to withdraw a single sum of $8,000 from an account at the end of 12 years. This withdrawal will deplete the account. a. What single sum of money must you deposit today if the account earns 5...
-
The projected October 31, 2011, balance sheet for Blanco Co. follows: ASSETS Cash .............................. $28,000,000 Accounts Receivable (net of Allowance for Uncollectibles of...
-
In 2006, e-Design was invited unexpectedly to participate in a design competition to provide new logos and new identity for Denmark's National Sports Team, a prestige client.What should the e-Design...
-
A set of ten jobs must be scheduled at an integrated machining center that performs a number of metal-cutting operations on components for complex assemblies. These jobs and their processing times...
-
Wise Photography reported net income of $130,000 for 2014. Included in the income statement were depreciation expense of $6,000, amortization expense of $2,000, and a gain on disposal of equipment of...
-
Tabares Corporation had these transactions during 2014. (a) Issued $50,000 par value common stock for cash. (b) Purchased a machine for $30,000, giving a long-term note in exchange. (c) Issued...
-
Under what circumstances should a leader be task centered? People centered? Use a blend of both approaches?
-
Solve this equation 2sin0 + sine=1 for 0 02: [4K]
-
Describe the mechanism and regulation of ketogenesis. When is ketogenesis the highest? Is ketosis safe long-term?
-
Which method of allocating service department costs (the direct method, the step method, and the reciprocal method) would result in you potentially receiving a higher year-end bonus?
-
Albatross Services scrapped a van. The van originally cost $40,000, had an estimated salvage value of zero, and an estimated life of 10 years. At the time it was scrapped, it had accumulated...
-
Sams building that was used for business was partially destroyed by a hurricane. There was no insurance for hurricane damage. The building had an adjusted basis of $46,000. The FMV was $90,000 just...
-
Why is the demand for the factors of production called derived demand?
-
Why can wastewater treatment requirements in Hawaii be less stringent than those in most locations on the U.S. mainland?
-
If there were no usury law, the interest rate would be percent. a) 16 b) 18 c) 20 d) 22 e) 24
-
You are a newly hired accountant with Batista Company. On your first day, the controller asks you to identify the main internal control objectives related to payroll accounting. How would you respond?
-
You are a newly hired accountant with Batista Company. On your first day, the controller asks you to identify the main internal control objectives related to payroll accounting. How would you respond?
-
What are the four functions associated with payroll activities?
-
Summarize how can managers apply information to teamwork, teamwork performances, decision-making, and influence team norms to more effectively lead with excellence, manage their employees, make...
-
Please summarize the below article in your own words. Please explain how the content relates to how can a new healthcare business model become a competitive advantage for an organization? We've seen...
-
Read the HBS Case titled Maggie Wilderotter: Evolution of an Executive and then respond to all prompts below: Prompt I: According to Harvard Business Review, the following is a list of the major...
Study smarter with the SolutionInn App