Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Martinez Industries had the following operating results for 2021: Sales = $35,025; Cost of goods sold = $24,555; Depreciation expense = $6,067; Interest expense =

Martinez Industries had the following operating results for 2021: Sales = $35,025; Cost of goods sold = $24,555; Depreciation expense = $6,067; Interest expense = $2,745; Dividends paid = $2,059. At the beginning of the year, net fixed assets were $20,010, current assets were $7,103, and current liabilities were $4,034. At the end of the year, net fixed assets were $24,565, current assets were $8,726, and current liabilities were $4,736. 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.)
c. What is the cash flow from assets for 2021? (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.)
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.

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

Pricing And Liquidity Of Complex And Structured Derivatives

Authors: Mathias Schmidt

1st Edition

3319459694, 978-3319459691

More Books

Students also viewed these Finance questions