Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i am not sure if mt answers are correct Rroblem 13. Calculating Cash Flows. Weiland Co. shows the following information on its 2022 income statement:
i am not sure if mt answers are correct
Rroblem 13. Calculating Cash Flows. Weiland Co. shows the following information on its 2022 income statement: sales =$336,000; costs =$194,700; other expenses =$9,800; depreciation expense =$20,600; interest expense =$14,200; taxes =$21,275; dividends =$21,450. In addition, you're told that the firm issued $7,100 in new equity during 2022 and redeemed $5,400 in outstanding long-term debt. a. What is the 2022 operating cash flow? EBIT + Depreciation - Taxes - (110900+2060021275)=110,225 b. What is the 2022 cash flow to the creditors? Interest - Redeemed - (14200(5400))=19,600 c. What is the 2022 cash flow to stockholders? Dividend - New equity - (214507100)=14,350 d. If net fixed assets increased by $53,200 during the year, what was the addition to NWC? - Cash Flow to Creditors + Cash Flow to Stock Holders = Cash Flow from Assets = (19600+14350)=33,950 - Increase in Net Fixed Assets + Depreciation = Net Capital Spending =(53200+20600)= 73800 - OCF - Net Capital Spending - Change in NWC 110225 - 73800 - Change in NWC =33950 Change in NWC= 110225-73800-33950 Addition of NWC= 2475 Step by Step Solution
There are 3 Steps involved in it
Step: 1
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