Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13. Gert. Co recently reported $10,750 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds

image text in transcribed
image text in transcribed
13. Gert. Co recently reported $10,750 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. During the year, the firm had expenditures on fixed assets and net working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow? $1,873 $1,972 $2,076 $2,300 None of the above 14. LSP had $85,000 in cash on the balance sheet at the beginning of 2016. You know that cash flow from operating activities totaled $1,150,000 inflow and cash flow from long-term investing activities totaled $900,000 outflow. Furthermore, LSP repaid a long-term loan of $150,000, issued common stock for a total amount of $50,000. The Company paid dividends to common stockholders of $75,000. The amount of cash flows provided from financing activities is: -275,000 0-175,000 25,000 O 125,000 O None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Re Imagining Offshore Finance

Authors: Christopher M. Bruner

1st Edition

0190466871, 978-0190466879

More Books

Students also viewed these Finance questions

Question

4. Describe the role of narratives in constructing history.

Answered: 1 week ago

Question

1. Identify six different types of history.

Answered: 1 week ago