Question
(13 points) Assuming that the tax rate is 20%, answer the questions below. 2018 2019 Sales 4,200 4,800 Cost of Goods Sold 2,000 2,500 Interest
(13 points) Assuming that the tax rate is 20%, answer the questions below.
2018
2019
Sales
4,200
4,800
Cost of Goods Sold
2,000
2,500
Interest
400
500
Dividends
200
300
Depreciation
300
400
Cash
250
300
Account Receivables
300
400
Account Payables
900
1,000
Inventory
1,000
1,500
Long-term Debt
3,300
4,000
Net Fixed Assets
6,000
6,500
(5 points) What is the firm's cash flow from assets for 2019?
(3 points) What is the value of cash flow to bondholders for 2019?
(5 points) What is the value of cash flow to stockholders for 2019?
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Fundamental Accounting Principles Volume II
Authors: Larson Kermit, Jensen Tilly
14th Canadian Edition
71051570, 0-07-105150-3, 978-0071051576, 978-0-07-10515, 978-1259066511
