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Minbari, Inc. shows the following information on its Y2019 income statement: Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest
Minbari, Inc. shows the following information on its Y2019 income statement: Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest expense = $50,000; Tax rate = 20%; Dividends = $30,000. The firm issued $20,000 in new equity, and used the amount to redeem $20,000 in outstanding long-term debt. What is the Y2019 cash flow to creditors of Minbari, Inc.?
What is the Y2019 cash flow to stockholders of Minbari, Inc.?
- a. -$50,000.
- b. -$10,000.
- c. +$10,000.
- d. +$50,000.
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