Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

- Martinez Industries had the following operating results for 2021: Sales = $34,520; Cost of goods sold = $24,310; Depreciation expense $6,017; Interest expense

image text in transcribed

- Martinez Industries had the following operating results for 2021: Sales = $34,520; Cost of goods sold = $24,310; Depreciation expense $6,017; Interest expense $2,720; Dividends paid = $2,014. At the beginning of the year, net fixed assets were $19,960, current assets were $7,068, and current liabilities were $4,004. At the end of the year, net fixed assets were $24,520, current assets were $8,696, and current liabilities were $4,691. The tax rate for 2021 was 24 percent. a. What is net income for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the operating cash flow for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What is the cash flow from assets for 2021? (A negative answer should be C. - indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. If no new debt was issued during the year, what is 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. ) a. Net income b. Operating cash flow c. Cash flow from assets d-1. Cash flow to creditors d-2. Cash flow to stockholders

Step by Step Solution

3.42 Rating (161 Votes )

There are 3 Steps involved in it

Step: 1

To answer these questions we will go through financial calculations based on the provided data a Net income for 2021 To calculate the net income we can use the following formula Net Income Sales Cost ... 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_2

Step: 3

blur-text-image_3

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

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss

8th Canadian Edition

01259270114, 9781259270116

More Books

Students also viewed these Accounting questions