Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How to calculate operating cash flow? Is the formula: operating cash flow= net sales- cost of goods- tax always right? Calculating Cash Flows [L02] Quarles
How to calculate operating cash flow? Is the formula: operating cash flow= net sales- cost of goods- tax always right?
Calculating Cash Flows [L02] Quarles Industries had the following operating results for 2015:sales = $30,096; cost of goods sold = $21,476; depreciation expense = $5,341; interest expense. = $2,409; dividends paid = $1,716. At the beginning of the year, net fixed assets were $18,018, current assets were $6,336, and current liabilities were $3.564. At the end of the year, net fixed assets were $22,176, current assets were $7,829, and current liabilities were $4,159. The tax rate for 2015 was 35 patent. a. What is net income for 2015? b. What is the operating cash flow for 2015? c. What is the cash flow from assets for 2015? Is this possible? Explain. d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? Explain and interpret the positive and negative signs of your answers in (a) through (d).
Step by Step Solution
★★★★★
3.42 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
Given information for 2015 Sales 30096 Cost of goods sold 21476 Depreciation expense 5341 Interest e...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started