Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Nanticoke Industries had the following operating results for 2020: sales $29,580; cost of goods sold = $19,610; depreciation expense = $5,140; interest expense = $2,490;

Nanticoke Industries had the following operating results for 2020: sales $29,580; cost of goods sold = $19,610; depreciation expense = $5,140; interest expense = $2,490; dividends paid = $1,300. At the beginning of the year, net assets were $17,030, current assets were $5,830, and current liabilities were $3,400. At the end of the year, net fixed assets were $20,510, current assets were $7,604, and current liabilities were $3,950. The tax rate for 2020 was 30%. a. What is net income for 2020? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) Net income $ b. What is the operating cash flow for 2020? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) Operating cash flow $ c. What is the cash flow from assets for 2020? (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

blur-text-image

Get Instant Access with AI-Powered 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

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

Students also viewed these Accounting questions