FREE Trial

Why has Ultra Cables stock price dropped so much recently despite an increase in its revenues and

Question:

Why has Ultra Cable€™s stock price dropped so much recently despite an increase in its revenues and its earnings per share?

Ultra Cable Corporation Statement of Cash Flows Current Year $ 100,000 Cash at beginning of current year Operating activ

Transcribed Image Text:

Ultra Cable Corporation Statement of Cash Flows Current Year $ 100,000 Cash at beginning of current year Operating activity Net income 357,750 Plus: Depreciation Increase in accounts payable 197,500 225,000 Less: Increase in accounts receivable (850,000) (1,626,125) (1,695,875) Increase in inventory Net cash from operating activity Investment activity Fixed asset acquisitions Net cash from investment activity (1,975,000) (1,975,000) Financing activity Increase in notes payable Increase in long-term debt 1,125,000 2,565,700 (107,325) Dividends paid Increase in common stock Net cash from financing activity 3,583,375 Net decrease in Cash (87,500) Cash, end of current year 12,500

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 75% (16 reviews)

Although Ultra Cable has made a net profit that is higher than that of t...View the full answer


answer-question-section
Answered By
tutor-profile-image
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others. I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years. I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+ 2+ Reviews 10+ Question Solved
Related Book For  book-img-for-question
Cases in Finance

Cases in Finance

ISBN: 978-1259330476

3rd edition

Authors: Jim DeMello

See More Books
Question Posted:
See More Questions

Related Video

Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.

Students also viewed these Business questions

Digital Marketing Introduction To Digital Marketing 2023 1st Edition - ISBN: 979-8861109543 - Free Book