Quarles Industries had the following operating results for 2015: sales = $30,096; cost of goods sold =
Question:
Quarles Industries had the following operating results for 2015: sales = $30,096; cost of goods sold = $21,476; depreciation expense = $5,341; interest expense = $2,409; dividends paid = $1,716. At the beginning of the year, net fixed assets were $18,018, current assets were $6,336, and current liabilities were $3,564. At the end of the year, net fixed assets were $22,176, current assets were $7,829, and current liabilities were $4,159. The tax rate for 2015 was 35 percent.
a. What is net income for 2015?
b. What is the operating cash flow for 2015?
c. What is the cash flow from assets for 2015? Is this possible? Explain.
d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? Explain and interpret the positive and negative signs of your answers in (a) through (d).
Cash flow from assets is the aggregate total of all cash flows related to the assets of a business. This information is used to determine the net amount of cash being spun off by or used in the operations of a business. The concept is comprised of...
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Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan