Schwert Corp. shows the following information on its 2020 income statement: sales = $315,000; costs = $208,600;

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Schwert Corp. shows the following information on its 2020 income statement: sales = $315,000; costs = $208,600; other expenses = $8,600; depreciation expense = $21,400; interest expense = $15,700; taxes = $12,747; dividends = $13,600. In addition, you’re told that the firm issued $8,400 in new equity during 2020 and redeemed $11,900 in outstanding long-term debt.

a. What was the 2020 operating cash flow?

b. What was the 2020 cash flow to creditors?

c. What was the 2020 cash flow to stockholders?

d. If net fixed assets increased by $28,600 during the year, what was the addition to net working capital?

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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