Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me with this accounting problem 6 parts to it! Calculate the operating cash flow, change in net working capital, net capital spending, cash
Please help me with this accounting problem 6 parts to it! Calculate the operating cash flow, change in net working capital, net capital spending, cash flow from assets, cash flow to creditors, and cash flow to stockholders. Below I attached my image. Please show work for the CORRECT formulas... It seems many times I post to Chegg I receive incorrect answers so please only answer is your answers are correct, and please show all work so I can do this for the test! Thank you!
Graffiti Advertising, Inc., reported the following financial statements for the last two years. (Enter your answer as directed, but do not round intermediate calculations.) 2014 Income Statement Sales Costs of goods sold Selling & administrative Depreciation $ 569,700 273,980 124,724 54,567 EBIT Interest $116,429 19,494 EBT Taxes $ 96,93.5 38,774 Net income $ 58,161 Dividends Addition to retained earnings $ 10,500 47,661 GRAFFITI ADVERTISING, INC Balance Sheet as of December 31, 2013 S 13,410 Accounts payable 18,985 Notes payable Cash Accounts receivable Inventory $ 9,495 14,499 13,803 _ -Current liabilities S 46,198 Long-term debt S 344,696 Owner's equity $ 23,994 $ 136,080 $ 230,820 Current assets Net fixed assets Total assets $ 390,894 bilities and owners' equity S390,894 GRAFFITI ADVERTISING, INC Balance Sheet as of December 31, 2014 $ 14,396 Accounts payable 21,090 Notes payable Cash Accounts receivable Inventory $ 10,521 16,475 22,763 Current liabilities Current assets Net fixed assets $ 58,249 Long-term debt $ 406,302 Owner's equity $ 26,996 $152,900 $ 284,655 Total assets $ 464,551 Total liabilities and owners' equity $ 464,551 Requirement 1 Calculate the operating cash flow Operating cash flow Requirement 2 Calculate the change in net working capital b. Change in net working capital Requirement 3: Calculate the net capital spending c. Net capital spending Requirement 4 Calculate the cash flow from assets. (Do not include the dollar sign ($). Negative amount sl indicated by a minus sign.) Cash flow from assets Requirement 5 Calculate the cash flow to creditors Cash flow to creditors Requirement 6: Calculate the cash flow to stockholders. (Negative amount should be indicated by a minus f. Cash flow to stockholders
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