Question
Partial financial data of Amna Shop is presented below: 2017 2018 LT-debt $1,450,000 $1,520,000 Share capital 490,000 525,000 Contributed surplus 3,400,000 3,700,000 Additional information: Interest
Partial financial data of Amna Shop is presented below:
|
| 2017 | 2018 |
| LT-debt | $1,450,000 | $1,520,000 |
| Share capital | 490,000 | 525,000 |
| Contributed surplus | 3,400,000 | 3,700,000 |
|
|
|
|
Additional information:
Interest expense incurred and paid in 2018 was $127,000.
Cash dividends paid in 2018 were $275,000.
a.
What was the firms cash flow to creditors? 3 marks
b.
What was the firms cash flow to shareholders? 3 marks
c.
In addition, suppose the firms net capital spending (in fixed assets) was $945,000 and that the firm reduced its net working capital by $87,000. What was the firms operating cash flow (OCF), as defined in class notes, in 2018? 6 marks
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1711
