Question
3) Given the financial statements for Vital, Inc. below, answer the following questions: a) (4 marks) Find the Operating Cash Flow in 2019. b) (5
3) Given the financial statements for Vital, Inc. below, answer the following questions:
a) (4 marks) Find the Operating Cash Flow in 2019.
b) (5 marks) How much was paid in dividends in 2019?
c) (10 marks) Find the Cash Flow from Assets in 2019. Explain the signs for each of the three components of the Cash Flow from Assets and their impact on the Cash Flow from Assets.
Vital, Inc. 2019 statement of comprehensive income ($ in millions)
Net sales 9610
(-) Cost of goods sold 6310
(-) Depreciation 1370
(=) EBIT 1930
(-) Interest paid 630
(=) Taxable income 1300
(-) Taxes 455
Net income 845
Vital, Inc. 2018 and 2019 Statement of Financial Positions ($ in millions)
2018 2019 2018 2019
Cash 310 405 Accounts payable 2720 2570
Accounts rec. 2640 3055 Notes payable 100 0
Inventory 3275 3850 Total 2820 2570
Total 6225 7310 Long-term debt 7875 8100
Net fixed assets 10960 10670 Common stock 5000 5250
Retained earnings 1490 2060
Total assets 17185 17980 Total liab. & equity 17185 17980
Please give detail of the solution way with formulas or calculator keys, not excel way. Thanks!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started