Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Freeman, Inc., reported the following financial statements for the last two years. 2014 Income Statement 565,300 Sales $ 273,975 Cost of goods sold Selling &

image text in transcribed
image text in transcribed
image text in transcribed
Freeman, Inc., reported the following financial statements for the last two years. 2014 Income Statement 565,300 Sales $ 273,975 Cost of goods sold Selling & administrative Depreciation 124,723 54,566 EBIT Interest $ 112,036 19,306 EBT Taxes $ 92,730 48,220 Net income $ 44,510 Dividends Addition to retained earnings $ 10,600 $ 33,910 $ 23,992 FREEMAN, INC. Balance Sheet as of December 31, 2013 Cash $ 13,420 Accounts payable Accounts receivable 18,984 Inventory 13,804 Current assets $ 46,208 Long-term debt 135,800 $ Net fixed assets $344,436 Owners' equity 230,852 $ Total assets Total liabilities and Owners' $390,644 $ 390,644 equity $26.998 FREEMAN, INC. Balance Sheet as of December 31, 2014 Cash $ 14,406 Accounts payable Accounts receivable 21,089 Inventory 22,764 Current assets $58,259 Long-term debt Net fixed assets 406,301 Owners' equity 153,000 $ $ $284,562 464,560 Total liabilities and Owners! equity $ 464,560 Total assets Operating cash flow 118382 Requirement 2: Calculate the change in net working capital. (Do not round intermediate calculations.) Change in net working capital Requirement 3: Calculate the net capital spending. (Do not round intermediate calculations.) Net capital spending Requirement 4: Calculate the cash flow from assets. (Do not round intermediate calculations.Negative amount should be indicated by a minus sign.) Cash flow from assets Requirement 5: Calculate the cash flow to creditors. (Do not round Intermediate calculations.) Cash flow to creditors Requirement 6: Calculate the cash flow to stockholders. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions