Question
Nanticoke Industries had the following operating results for 2018: sales $30,420; cost of goods sold = $20,060; depreciation expense = $5,500; interest expense = $2,940;
Nanticoke Industries had the following operating results for 2018: sales $30,420; cost of goods sold = $20,060; depreciation expense = $5,500; interest expense = $2,940; dividends paid = $1,750. At the beginning of the year, net assets were $17,410, current assets were $5,920, and current liabilities were $3,475. At the end of the year, net fixed assets were $20,960, current assets were $7,390, and current liabilities were $4,050. The tax rate for 2018 was 30 %.
a. What is net income for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)
Net income $
b. What is the operating cash flow for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)
Operating cash flow $
c. What is the cash flow from assets for 2018? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.)
Cash flow from assets $
d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to shareholders? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)
Cash flow to creditors | $ |
Cash flow to shareholders | $ |
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