Question 3 of 34 You are working with the corporate finance team at your company to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 3 of 34 You are working with the corporate finance team at your company to estimate how the company's Net Cash Flow will differ from its Net Income in the current quarter. The team has made the following estimates for various line items this quarter: . Operating Income of $200. .Net Interest Expense of $10. - Depreciation of $10. Accounts Receivable has increased by $50. . The company has purchased $40 of Inventory and not yet delivered it to customers in the form of finished products. . The company has paid for $30 of annual property insurance upfront in cash, but the policy begins next quarter. . The company has collected $40 in cash from customers without delivering the associated products/services. . The company spent $20 on Capital Expenditures (CapEx). . And the company issued $30 in Common Dividends to its shareholders. Based on this information, how much of a DIFFERENCE will there be between Net Income and Net Cash Flow? Assume a 25% tax rate. A Net Income will be higher by $140. B Net Income will be higher by $135. C Net Income will be higher by $120. D Net Income will be higher by $100. Question 3 of 34 You are working with the corporate finance team at your company to estimate how the company's Net Cash Flow will differ from its Net Income in the current quarter. The team has made the following estimates for various line items this quarter: . Operating Income of $200. .Net Interest Expense of $10. - Depreciation of $10. Accounts Receivable has increased by $50. . The company has purchased $40 of Inventory and not yet delivered it to customers in the form of finished products. . The company has paid for $30 of annual property insurance upfront in cash, but the policy begins next quarter. . The company has collected $40 in cash from customers without delivering the associated products/services. . The company spent $20 on Capital Expenditures (CapEx). . And the company issued $30 in Common Dividends to its shareholders. Based on this information, how much of a DIFFERENCE will there be between Net Income and Net Cash Flow? Assume a 25% tax rate. A Net Income will be higher by $140. B Net Income will be higher by $135. C Net Income will be higher by $120. D Net Income will be higher by $100.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
A utilization greater than one suggests that the mean service time is higher than the mean inter-arrival time. True False QUESTION 3 It costs five times more money to retain a current customer than...
-
Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to withdraw $20,000 per year on June 30,...
-
1. Design a database for Ray. He is interested in movie DVDs and wants to keep information on movies, actors, and directors in a database. The only user is Ray, and he needs to produce the following...
-
You are the chief information security officer for a small company. You are asked to design appropriate controls for the payroll and inventory management sys tems. Following is a list of users and...
-
Larcker Manufacturings cost accountant has provided you with the following information for January operations: Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $105...
-
How a Cyber Kill Chain can be broken by taking security measures at each stage? Justify your answer with some examples.
-
Describe meaning of segmentation in marketing strategies. Which segment would you suggest to the organization to focus? Provide user profile What kind of unfulfilled needs would your target segment...
-
One of Karen's favorite things in the whole world is her grandma's banana bread. Karen has become so obsessed with this bread tha she's using her grandma's recipe and making it for her friends. She...
-
An established client of the firm, InterSpirit S.p.A. (the "Client"), a multinational beverage and alcohol company headquartered in Milan, is concerned about a possible trade mark infringement. As...
-
Write down the required recursive function(s) in Scheme pro- gramming language to compute the following series : 1 34 21 56 78 + + 43 65 + 910 109 Problem 4. [10 Marks] What are the main...
-
Whispering Company owes $190,000 plus $16,600 of accrued interest to Metlock State Bank. The debt is a 10-year, 10% note. During 2025, Whispering's business deteriorated due to a faltering regional...
-
Design a microprogrammed control unit to implement the following algorithm (register transfer statements) assuming that all registers are 8- bit registers: STEP1: STEP2: STEP3: R14-0; R5 + -12; R1 +...
-
Alan Jackson invests $30,700 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of...
-
Beginning with a country that has a trade deficit, demonstrate graphically what will happen to a countrys potential output with globalization if that countrys costs of production fall. Explain your...
-
The summarised income statement for the years ended 31 March 2009 and 2010 and balance sheets as at 31 March 2009 and 31 March 2010 for Boxer plc are shown below: Required: (i) Calculate the...
-
Refer to note 1 in Johnson Matthey Plcs notes on the accounts in their annual report and accounts 2011 and identify the geographical analysis by origin for 2011 and 2010 for: (a) total revenue (b)...
-
The notes and five-year income statement extracts from the financial statements of an alcoholic drinks group are shown below. Notes: The group sells alcohol-based products to consumers and operates...
Study smarter with the SolutionInn App