IConia-high tech company - can pay suppliers in the quarter after it has sold to customers....

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IConia-high tech company - can pay suppliers in the quarter after it has sold to customers. Iconia has 25% net profit margin and is reporting the following in its quarterly reports Income Statement Income Statement Balance Sheet 101 £0 Reported Sales Reported Net Income Reported Accounts Payable £0 Balance Sheet Balance Sheet £0 Stock of Inventory Reported Accounts Receivable a) What are Iconia quarterly cash flows taking Accounts Payable into account? b) How does the timing and the value of the cash flows after accounting for payables differ those of net income? 102 £100 £25 £75 Iconia offered some trade credit to its clients after it suffered a slower growth in sales than expected. These are detailed in the table below 1Q1 £0 £0 c) What are the actual IConia quarterly cash flows? 1Q3 £100 £25 £75 1Q2 £30 £20 1Q4 £400 £100 £300 1Q3 £60 £50 1Q4 £10 £100 201 £0 £0 £0 2Q1 880 IConia-high tech company - can pay suppliers in the quarter after it has sold to customers. Iconia has 25% net profit margin and is reporting the following in its quarterly reports Income Statement Income Statement Balance Sheet 101 £0 Reported Sales Reported Net Income Reported Accounts Payable £0 Balance Sheet Balance Sheet £0 Stock of Inventory Reported Accounts Receivable a) What are Iconia quarterly cash flows taking Accounts Payable into account? b) How does the timing and the value of the cash flows after accounting for payables differ those of net income? 102 £100 £25 £75 Iconia offered some trade credit to its clients after it suffered a slower growth in sales than expected. These are detailed in the table below 1Q1 £0 £0 c) What are the actual IConia quarterly cash flows? 1Q3 £100 £25 £75 1Q2 £30 £20 1Q4 £400 £100 £300 1Q3 £60 £50 1Q4 £10 £100 201 £0 £0 £0 2Q1 880

Answer rating: 100% (QA)

To calculate Iconias quarterly cash flows well need to consider the impact of accounts payable accounts receivable and changes in inventory Lets break ... View the full answer