Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I work this out? Company A has the following information on its 2016 income statement: Sales = $204,500; costs = $76,000; other expenses

How do I work this out?

Company A has the following information on its 2016 income statement:

Sales = $204,500; costs = $76,000; other expenses = $7,950; depreciation expense = $20,800; interest expense = $7,500; taxes = $29,980 (with 1,150 deferred); dividends = $16,000.

In addition, the firm issued $8,390 in new equity during the year and redeemed $5,150 in outstanding long-term debt. Answer the following questions:

1) What is the 2016 operating cash flow? 2) What is the 2016 cash flow to creditors? 3) What is the 2016 cash flow to stockholders? 4) If net fixed assets increased by $32,100 during the year, what was the change to net working capital (NWC)?

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

Real Estate Finance

Authors: John P. Wiedemer, ‎ Keith J. Baker

9th edition

324181426, 324181425, 978-0324181425

More Books

Students also viewed these Finance questions

Question

Define belongingness, competence, and autonomy.

Answered: 1 week ago