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Graffiti Advertising, Inc., reported the following financial statements for the last two years. 2019 Income Statement Sales $ 565,700 Costs of goods sold 274,020 Selling
Graffiti Advertising, Inc., reported the following financial statements for the last two years. |
2019 Income Statement | ||
Sales | $ | 565,700 |
Costs of goods sold | 274,020 | |
Selling & administrative | 124,732 | |
Depreciation | 54,575 | |
EBIT | $ | 112,373 |
Interest | 19,318 | |
EBT | $ | 93,055 |
Taxes | 37,222 | |
Net income | $ | 55,833 |
Dividends | $ | 9,700 |
Addition to retained earnings | $ | 46,133 |
GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2018 | |||||
Cash | $ | 13,330 | Accounts payable | $ | 9,503 |
Accounts receivable | 18,993 | Notes payable | 14,507 | ||
Inventory | 13,795 | ||||
Current liabilities | $ | 24,010 | |||
Current assets | $ | 46,118 | Long-term debt | $ | 136,720 |
Net fixed assets | $ | 344,456 | Owners' equity | $ | 229,844 |
Total assets | $ | 390,574 | Total liabilities and owners equity | $ | 390,574 |
GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2019 | |||||
Cash | $ | 14,316 | Accounts payable | $ | 10,513 |
Accounts receivable | 21,098 | Notes payable | 16,467 | ||
Inventory | 22,755 | ||||
Current liabilities | $ | 26,980 | |||
Current assets | $ | 58,169 | Long-term debt | $ | 152,100 |
Net fixed assets | $ | 406,310 | Owners' equity | $ | 285,399 |
Total assets | $ | 464,479 | Total liabilities and owners equity | $ | 464,479 |
a. | Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
b. | Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
c. | Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
d. | Calculate the cash flow from assets. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
e. | Calculate the cash flow to creditors. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
f. | Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
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