Denbury Technologies has net income of $308,000. The firm pays out 30 percent of the net income to its shareholders as dividends. During the year, the company sold $81,000 worth of common stock. What is the cash flow to stockholders?

		$11,400
		$17,200
		$20,600
		$22,200
		$9,800

10 points

QUESTION 5

What is the cash flow of the firm, or CF(A), for 2017?

Emerson Company
2017 Income Statement
Net sales	32,000.00
Cost of goods sold	22,400.00
Selling, general, and administrative expenses	1,600.00
Depreciation	1,280.00
Earnings before interest and taxes	6,720.00
Interest	640.00
Pretax income	6,080.00
Taxes	1520.00
Net income	4,560.00
Emerson Company
2016 and 2017 Balance Sheets
	2016	2017					2016	2017
Cash	320	336		Accounts payable			6,241	6,394
Accounts receivable	3,006	3,422		Accrued expenses			1,880	1,645
Inventory	5,310	5,950		Total			8,121	8,039
Total	8,636	9,708		Long-term debt			17,536	20,291
Net fixed assets	32,365	34,600		Owners' equity			15,344	15,978
Total assets	41,001	44,308		Total liabilities and equity			41,001	44,308

		$2,016
		-$1,320
		$1,570
		-$970
		$1,811

10 points

QUESTION 6

What is the cash flow to the creditors for 2017?

Emerson Company
2017 Income Statement
Net sales	32,000.00
Cost of goods sold	22,400.00
Selling, general, and administrative expenses	1,600.00
Depreciation	1,280.00
Earnings before interest and taxes	6,720.00
Interest	640.00
Pretax income	6,080.00
Taxes	1520.00
Net income	4,560.00
Emerson Company
2016 and 2017 Balance Sheets
	2016	2017					2016	2017
Cash	320	336		Accounts payable			6,241	6,394
Accounts receivable	3,006	3,422		Accrued expenses			1,880	1,645
Inventory	5,310	5,950		Total			8,121	8,039
Total	8,636	9,708		Long-term debt			17,536	20,291
Net fixed assets	32,365	34,600		Owners' equity			15,344	15,978
Total assets	41,001	44,308		Total liabilities and equity			41,001	44,308

		$2,340
		-$2,115
		-$2,433
		-$2,617
		$2,745