Evaluate the Ultra Cable absolute and relative liquidity positions and compare them with its liquidity position last
Question:
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
Step by Step Answer:
Liquidity is defined as the ability of converting an asset into cash without significant loss of val...View the full answer
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
-
Compare the Ultra Cable market value with its book value. Is the book value a good representation of the Ultra Cable??s true condition? Explain your answer Ultra Cable Corporation Statement of Cash...
-
Compare The Gap Inc. (FA3-2) and American Eagle Outfitters Inc. (FA3-3) liquidity positions for Year 2. Comment on the differences. In FA3-2, The Gap Inc. operates over 3,000 specialty retail stores...
-
Using the following data for Jackson Products Company, answer Parts a through g: Jackson Products Company's Balance Sheet Industry Averages Current ratio ..................2.5:1 Quick ratio...
-
3. Using an AD-AS model, can you answer whether a tax that improves people's health could have any potential long-term benefits for the economy.
-
To use the F distribution, what degrees of freedom need to be calculated?
-
Prior to 2018, Celgene Corporation, a biopharmaceutical company (with specialities in oncology, inflammation, and immunology) had owned a 9.6 percent equity interest in Juno Therapeutics Inc. (Juno)....
-
The pump shown in Fig. P8.93 delivers a head of \(250 \mathrm{ft}\) to the water. Determine the power that the pump adds to the water. The difference in elevation of the two ponds is \(200...
-
Suppose that the economy is initially in a steady state and that some of the nations capital stock is destroyed because of a natural disaster or a war. (a) Determine the long-run effects of this on...
-
Analyze the Navier-Stokes equations in the context of fluid dynamics, focusing on their mathematical complexity and physical interpretation, and discuss the conditions under which these equations...
-
The position of a particle as a function of time is given by r(vector) = (5.0i + 4.0j)t 2 m, where t is in seconds. a. What is the particles distance from the origin at t = 0, 2, and 5 s? b. Find an...
-
A random variable X has a mgf m(t) = pe t + qe t + 1 p q, where p + q = 1. Find all the moments of X.
-
Calculate Gillian Pool and Spa Supplies average annual compound growth rate of sales and analyze its earnings performance for the past 5 years.
-
Find equations of (a) The tangent plane (b) The normal line to the given surface at the specified point. x 2 + 2y 2 3z 2 = 3, (2, 1, 1)
-
What colour change do you observe in the biotransformation of L-tryrosine to L-DOPA over time? What causes the colour change?
-
Explain how you would use industry information and corporate disclosures to forecast a company's future financial results.
-
Johnstown Company granted 1 0 officers rights to buy 1 0 , 0 0 0 shares each of common stock $ 1 par, at $ 1 5 per share on May 1 , 2 0 2 4 , the grant date. The stock was selling for $ 1 0 per share...
-
ESSAY-4-5 pages Upward economic mobility is difficult to attain in this country. You implicitly know this; that's why you've come to college. But just being in college isn't enough. How can you...
-
Article Analysis essay about Two Articles: "The Forms of Capital" - by P. Bourdieu and "Whose Culture has Capital?" - by T. Yosso essay Discussing each author's perspectives on "capital?" Next...
-
You can review the Disney SEC Form 10-K by searching for Disney Annual Report online. REQUIRED: Review the 2015 (10/3/2015) Disney SEC Form 10-K, and answer the following questions: a. What...
-
Write a program to move a signed number from smaller register to bigger register. Hint: movzx ax, bl Topic: Data Related Operators and Directives in assembly language
-
1. What is private equity investing? 2. What features of private equity investing make it unique? How does it differ from public market investing? Why might a firm like Palamon play in the private...
-
1. What is going on at Rosetta Stone? 2. Tell me about the economics of the Rosetta Stone business. Is this a business that you expect will generate interest among investors? 3. What do you think the...
-
1. What is an IPO and why is it such a big deal? Is this a good idea for JetBlue? 2. What do you think JetBlue stock is worth? 3. Does the financial forecast in case Exhibit 13 seem reasonable? What...
-
In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by...
-
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold...
-
The Sky Blue Corporation has the following adjusted trial balance at December 31. Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts...
Study smarter with the SolutionInn App