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I only need help with d. My professor says that I got the answer wrong and I am not sure where I went wrong in
I only need help with d. My professor says that I got the answer wrong and I am not sure where I went wrong in my calculations.
L0 4 14. Calculating Cash Flows. Weiland Co. shows the following information on its 2016 income statement: sales = $173,000; costs = $91.400; other expenses = $5,100: depreciation expense = $12,100; interest expense = $8.900; taxes = $21,090; dividends = $9.700. In addition, you're told that the firm issued $2,900 in new equity during 2016 and redeemed $4,000 in outstanding long-term debt. a. What is the 2016 operating cash flow? b. What is the 2016 cash flow to creditors? c. What is the 2016 cash flow to stockholders? d. If net fixed assets increased by $23,140 during the year, what was the addition to NWC? 55,410 a. Operating Cash Flow $ Weiland Co 2016 Operating Cash Flow Earnings before interest and taxes $ + Depreciation Taxes Operating cash flow $ 64,400 12,100 21,090 55,410 12,900 b. Cash Flow to Creditors $ Weiland Co 2016 Cash Flow to Creditors Interest paid $ + Redeemed Long-term debt Cash flow to creditors $ 8,900 4,000 12,900 c. Cash Flow to Stockholders $ 6,800 Weiland Co 2016 Cash Flow to Stockholders Dividends paid $ 9,700 Net new equity 2,900 Cash flow to stockholders $ 6,800 d. Addition to NWC $ 470 Weiland Co Cash Flow to Assets Cash flow to Creditors $ 12,900 + Cash flow to Stockholders 6,800 Cash Flow to Assets $ 19,700 Weiland Co 2016 Net Capital Spending Increased fixed assets $23,140 + Depreciation 12,100 Net capital spending $35,240 U.S. Corporation 2016 Cash Flow to Assets Operating cash flow $55,410 Net capital spending 35,240 - Change in NWC 470 Cash flow to assets $19,700
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