Net income 35400 Dep. 24600 Cash flow from A/R -13600 Cash flow Inv. 9400 Cash flow from A/P -1700 Cash flow from Accruals. 1100 55,200 What is the Net Cash Flow from Financing Activities for Genoda Inc. in 2005? (5,300) (30,900) 22,800 19,400 (13,700) Solution N/P -3400 Current portion -1000 L-T debt 9900 Common stock 5300 Additional paidin 8600 Dividend payment -33100 Assume you are given the following information for the company E-Toscali: Return on Equity (ROE): 40% Debt Ratio (DR): 60% Compute the Return on Assets (ROA) for E-Toscali 100% 16% 24% 33% 40% Solution: debt ratio is 60% , so the equity is 40% of asset. So ROE=ROA x (asset/equity) 0.4=ROA x (100% / 40%) ROA= 0.16 If Jennings reported Retained earnings of 5000 for 2005 and Retained earnings of 10000 for 2006 in balance sheets, and net income of 40000 in their 2006 income statement, how much dividend paid in 2006? 40000-(10000-5000)=35000
Net income 35400 Dep. 24600 Cash flow from A/R -13600 Cash flow Inv. 9400 Cash flow from A/P -1700 Cash flow from Accruals. 1100 55,200 What is the Net Cash Flow from Financing Activities for Genoda Inc. in 2005? (5,300) (30,900) 22,800 19,400 (13,700) Solution N/P -3400 Current portion -1000 L-T debt 9900 Common stock 5300 Additional paidin 8600 Dividend payment -33100 Assume you are given the following information for the company E-Toscali: Return on Equity (ROE): 40% Debt Ratio (DR): 60% Compute the Return on Assets (ROA) for E-Toscali 100% 16% 24% 33% 40% Solution: debt ratio is 60% , so the equity is 40% of asset. So ROE=ROA x (asset/equity) 0.4=ROA x (100% / 40%) ROA= 0.16 If Jennings reported Retained earnings of 5000 for 2005 and Retained earnings of 10000 for 2006 in balance sheets, and net income of 40000 in their 2006 income statement, how much dividend paid in 2006? 40000-(10000-5000)=35000
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