Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Partial financial data of Amna Shop is presented below: LT-debt Share capital Contributed surplus 2017 $1,450,000 490,000 3,400,000 2018 $1,520,000 525,000 3,700,000 Additional information: Interest
Partial financial data of Amna Shop is presented below: LT-debt Share capital Contributed surplus 2017 $1,450,000 490,000 3,400,000 2018 $1,520,000 525,000 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 firm's cash flow to creditors? 3 marks b. What was the firm's cash flow to shareholders? 3 marks c. In addition, suppose the firm's net capital spending (in fixed assets) was $945,000 and that the firm reduced its net working capital by $87,000. What was the firm's operating cash flow (OCF), as defined in class notes, in 2018? 6 marks
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