Question
Nanticoke Industries had the following operating results for 2018: sales $28,000; cost of goods sold = $19,660; depreciation expense = $5,180; interest expense = $2,490;
Nanticoke Industries had the following operating results for 2018: sales $28,000; cost of goods sold = $19,660; depreciation expense = $5,180; interest expense = $2,490; dividends paid = $1,350. At the beginning of the year, net fixedassets were $17,180, current assets were $5,840, and current liabilities were $3,360. At the end of the year, net fixed assets were $20,560, current assets were $7,000, and current liabilities were $3,960. The tax rate for 2018 was 30 %.
a.What is net income for 2018?
b.What is the operating cash flow for 2018?
c.What is the cash flow from assets for 2018?
d.If no new debt was issued during the year, what is the cash flow to creditors? What is the 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