Question
Company ABC realized the following financial results in 2018: sales revenue = $15,200; cost of goods sold and other expenses = $11,400; depreciation = $2,700;
Company ABC realized the following financial results in 2018: sales revenue = $15,200; cost of goods sold and other expenses = $11,400; depreciation = $2,700; interest expenses = $520; dividends = $600. At the beginning of 2018, Net fixed assets numbered $9,100, current assets = were $3,200, and current liabilities $2,100. The tax rate for 2018 is 34%.
a) Calculate the net income for 2018
b) Calculate the size of the operating cash flow year for 2018 and comment on what information it brings to the enterprise
c) Calculate the amount of cash flow from assets for 2018. Discuss the concept and comment on whether and when the obtained result is possible.
d) Assume that no new long-term debt was issued during the year and that no debt was repaid. Determine the size of the cash flow to creditors and that for shareholders. Explain how the company financed its activities in 2018
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