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Given the following information about Heyman Ltd for the year ended 2018 Sales Cost of goods sold Depreciation expense Interest expense $ 78,000 32,500 2,500

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Given the following information about Heyman Ltd for the year ended 2018 Sales Cost of goods sold Depreciation expense Interest expense $ 78,000 32,500 2,500 1000 Net fixed assets Current assets Current liabilities Beginning of the year $ 108,000 6,500 3,300 End of the year $ 120,500 7.700 4,100 The tax rate for the year was 40%. 4. Calculate the cash flow from asset (CFFA). (2 marks) 5. Suppose that $1,300 existing debt was redeemed and no new debt was issued in 2018. Calculate the cash flow to creditors and cash flow to stockholders? (Hint: use the cash flow identity) (4 marks)

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