Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculating Cash Flows LO2] Dahlia Industries had the following operating Results for 2009: sales_$22,800; cost of goods sold_$16,050; depreciation Expense _ $4,050; interest expense_$1,830; dividends
Calculating Cash Flows LO2] Dahlia Industries had the following operating Results for 2009: sales_$22,800; cost of goods sold_$16,050; depreciation Expense _ $4,050; interest expense_$1,830; dividends paid_$1,300. At the beginning of the year, net fixed assets were $13,650, current assets were $4,800, and current liabilities were $2,700. At the end of the year, net fixed assets were $16,800, current assets were $5,930, and current liabilities were $3,150. The tax rate for 2009 was 34 percent. a. What is net income for 2009? b. What is the operating cash flow for 2009? c. What is the cash flow from assets for 2009? Is this possible? Explain. d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? Explain and interpret the positive and Negative signs of your answers in (a) through (d)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started