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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

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

  1. (5 points) What is the firms cash flow from assets for 2019?

  1. (3 points) What is the value of cash flow to bondholders for 2019?

  1. (5 points) What is the value of cash flow to stockholders for 2019?

You are NOT allowed to use the cash flow identity for this problem.

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