Given the information for Whelan, Inc., in Problems 10 and 11, suppose you also know that the

Question:

Given the information for Whelan, Inc., in Problems 10 and 11, suppose you also know that the firm’s net capital spending for 2019 was $745,000 and that the firm reduced its net working capital investment by $94,300. What was the firm’s 2019 operating cash flow, or OCF?

Problems 10 and 11

The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,350,000, and the December 31, 2019, balance sheet showed long-term debt of $1,470,000. The 2019 income statement showed an interest expense of $97,500. What was the firm’s cash flow to creditors during 2019?

The December 31, 2018, balance sheet of Whelan, Inc., showed $120,000 in the common stock account and $2,289,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $137,000 and $2,568,000 in the same two accounts, respectively. If the company paid out $149,500 in cash dividends during 2019, what was the cash flow to stockholders for the year?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Cash Flow To Creditors
Cash flow to debt holder’s equation to compute the cash flow of a company. Cash flow is the measure of total amount of liquid cash that is moving in and out of the business. Cash flow to creditors formula is derived as I - E + B where I =...

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