Financial Management 101: Introduction to Business Finance-Cash Flow

Cash Flow

Pdf Summary

The given document provides information about the cash flow statement and floor plan notes for a particular period. The net cash from operating activities is not mentioned explicitly in the document. The net cash from investing activities is 7,000.00 and the net cash from financing activities is (7,500.00). The net change in cash and cash equivalents is 25,000.00. The cash and equivalents at the beginning of the period were 50,000.00, while at the end of the period they were 25,000.00.<br /><br />The cash flow statement for the operating activities shows a net income of 15,000.00. There are various adjustments made to reconcile the net income to the net cash provided by operations. These adjustments include depreciation and amortization of 10,000.00, rental depreciation of 5,000.00, and no gain on sales of property and equipment. There is an increase in trade accounts receivable of (25,000.00), an increase in inventory of 15,000.00, and no change in other assets. There is a decrease in trade accounts payable of (10,000.00) and no change in accrued expenses. The document also mentions a decrease in customer refunds and deposits of (500.00).<br /><br />The cash flow statement for the investing activities shows no proceeds from sales of property and equipment, rental fleet equipment purchases of 5,000.00, and capital expenditures of 2,000.00.<br /><br />The cash flow statement for financing activities shows net borrowings/repayments under the line of credit of (2,500.00), net borrowings/repayments on long-term debt of (5,000.00), and no proceeds from the issuance of long-term debt. There are also no distributions to stockholders or payments on stockholder notes mentioned in the document.

Keywords

cash flow statement

floor plan notes

net cash from operating activities

net cash from investing activities

net cash from financing activities

net change in cash and cash equivalents

net income

depreciation and amortization

trade accounts receivable

inventory