Question: Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended Dec.

Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended Dec. 31, 2010.

(a) Operating Cash Flow

(b) Free Cash Flow

For the year ended December 31,

Depreciation

2009

2010 $3,000

EBIT

2009

2010 $30,000

Interest Expenses

2009

2010 $3,000

Taxes

2009

2010 $8,000

Cash

2009 $21,000

2010 $24,000

Accounts Receivable

2009 $39,000

2010 $45,000

Inventory

2009 $27,000

2010 $30,000

Net Fixed Assets

2009 $22,000

2010 $24,000

Accounts Payable

2009 $25,000

2010 $30,000

Notes Payable

2009 $50,000

2010 $40,000

Accruals

2009 $1,000

2010 $2,000

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