Financial Questions
Student Name
Institution Affiliate
Date
,Question 1
Bradford Cash Flow Statement
For the year ended October 31, 2020
Net income before tax 70
Adjustments:
Depreciation 40
Interest expense 4
Interest income (3)
Gain on sale 9
Operating profits before 120
changes
Adjustments
Increase in inventory (305)
Decrease in account 13
receivable
Increase in inventory payable 454
Cash generated from 282
operation
Less income tax paid (8)
Net cash from operating 274
Sales on non-current asset 35
Purchase of fixed asset (304)
, Interest received 3
Dividend received 78
Net cash from investing (188)
Proceeds from issues of share 301
capital
Repayment of long term debt -72
Payment of interest -12
Payment of dividend -33
Net cash from financing 184
Net increase in cash flow 270
Beginning cash balance
(50)
Ending cash balance 220
Question 1 b
Buying shares from a public company that is listed under the stock exchange means that
the organization is part of people that owns the edge hill company. Therefore listing nine million
dollars is in cash and cash flow is a way of saying the organization can liquidate the amount of
money by selling the six percent shares.
Question 1 c
Student Name
Institution Affiliate
Date
,Question 1
Bradford Cash Flow Statement
For the year ended October 31, 2020
Net income before tax 70
Adjustments:
Depreciation 40
Interest expense 4
Interest income (3)
Gain on sale 9
Operating profits before 120
changes
Adjustments
Increase in inventory (305)
Decrease in account 13
receivable
Increase in inventory payable 454
Cash generated from 282
operation
Less income tax paid (8)
Net cash from operating 274
Sales on non-current asset 35
Purchase of fixed asset (304)
, Interest received 3
Dividend received 78
Net cash from investing (188)
Proceeds from issues of share 301
capital
Repayment of long term debt -72
Payment of interest -12
Payment of dividend -33
Net cash from financing 184
Net increase in cash flow 270
Beginning cash balance
(50)
Ending cash balance 220
Question 1 b
Buying shares from a public company that is listed under the stock exchange means that
the organization is part of people that owns the edge hill company. Therefore listing nine million
dollars is in cash and cash flow is a way of saying the organization can liquidate the amount of
money by selling the six percent shares.
Question 1 c
