Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

General Therapeutics Co.s Revenue in 2018 was $55,000 while its cost of goods sold was $42,000; the company paid $600 in interest while value for

General Therapeutics Co.s Revenue in 2018 was $55,000 while its cost of goods sold was $42,000; the company paid $600 in interest while value for depreciation was $6,000.

Also, for 2018 net fixed assets were $25,000 while its current assets were $8,000 and current liabilities were $5,000.

These are the values for 2017: net fixed assets = $19,500, current assets = $6,800 and current liabilities = $4,500. The tax rate is 35%.

Required:

  1. What is net income for 2018?
  2. What is the operating cash flow for 2018?
  3. What is the cash flow from assets for 2018? How do you interpret this result?
  4. What is the cash flow to shareholders?

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

Step: 3

blur-text-image

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

Managing Finance A Socially Responsible Approach

Authors: D. Crowther

1st Edition

0750661011, 978-0750661010

More Books

Students also viewed these Finance questions

Question

Critically evaluate Freuds stages of psychosexual development.

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago