Gambia Co. made a net loss of $500,000 in the year. Depreciation expense was $200,000. During...

 

 

 

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Gambia Co. made a net loss of $500,000 in the year. Depreciation expense was $200,000. During the year, accounts receivable decreased by $50,000, and inventory increased by $25,000. Accounts payables increased by $75,000. Required (a) Calculate the cash from or cash used in operations. (10 marks) (b) Comment on the operating cash flow calculated in (a) above. (5 marks) (c) If the company borrowed $300,000 from the bank during the year and had no cash from/used in investing activities, comment on the implications of the cash flow statement for the company (10 marks) Wood Products Inc. expects to have a cash balance of $25,000 on January 1. Relevant information is as follows (See image below): Required (a) Prepare a cash budget for January, February, and March. (15 marks) (b) Is there a problem with the cash budget? Provide your comments to support your answer, including possible solutions to address any problems, where applicable (10 marks) Wood Products Inc. expects to have a cash balance of $25,000 on January 1. Relevant information is as follows (See image below): Required (a) Prepare a cash budget for January, February, and March. (15 marks) (b) Is there a problem with the cash budget? Provide your comments to support your answer, including possible solutions to address any problems, where applicable (10 marks) Gambia Co. made a net loss of $500,000 in the year. Depreciation expense was $200,000. During the year, accounts receivable decreased by $50,000, and inventory increased by $25,000. Accounts payables increased by $75,000. Required (a) Calculate the cash from or cash used in operations. (10 marks) (b) Comment on the operating cash flow calculated in (a) above. (5 marks) (c) If the company borrowed $300,000 from the bank during the year and had no cash from/used in investing activities, comment on the implications of the cash flow statement for the company (10 marks) Wood Products Inc. expects to have a cash balance of $25,000 on January 1. Relevant information is as follows (See image below): Required (a) Prepare a cash budget for January, February, and March. (15 marks) (b) Is there a problem with the cash budget? Provide your comments to support your answer, including possible solutions to address any problems, where applicable (10 marks) Wood Products Inc. expects to have a cash balance of $25,000 on January 1. Relevant information is as follows (See image below): Required (a) Prepare a cash budget for January, February, and March. (15 marks) (b) Is there a problem with the cash budget? Provide your comments to support your answer, including possible solutions to address any problems, where applicable (10 marks)