Use the given financial statements 

sales revenue					150.000 $
cost of goods sold					117.500 $
Gross profit					32,500 dollars
	selling expenses			$4,500
	General and Administrative Costs			4.000 $
	Depreciation Expense			4.000 $
operating profits					20.000 $
interest expense					$2,500
Net Profit Before Tax					17,500 dollars
Taxes (40%)					7.000 $
Net Profit After Taxes					$10,500

Max, Inc., Balance Sheet

For Years Ended 31 December 2011 and 2012

				2012			2011
assets
in advance				24.000 $			21.000 $
Accounts receivable				45.000 $			39.000 $
Inventory				30.000 $			27.000 $
	Gross fixed assets		42.000 $			40.000 $
	acc. Depreciation		22.000 $			18.000 $
net fixed assets				20.000 $			22.000 $
Total Assets
Obligation and egalitarianism
Accounts payable				25.000 $			30.000 $
Notes payable				50.000 $			40.000 $
accruals				$1000 dollars			2.000 $
Long Term Debts				10.000 $			8.000 $
Common Stock Per				$1000 dollars			$1000 dollars
Paid-in capital				4.000 $			4.000 $
Retained earnings				28.000 $			24.000 $
Total Liabilities and Equity				119.000 $			109.000 $

Instructions

A. Prepare a cash flow statement for the year ended December 31, 2012, organized by cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

B. Calculate the free cash flows generated by Max as of December 31, 2012.

Answer rating: 100% (QA)

A Cash Flow Statement for the year ended December 31 2012 Cash Flows from Operating Activities Net P... View the full answer