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Please reply as soon as possible fill the blank begin{tabular}{|rrr|} hline Sales & 4,203 & 4,507 hline Cost of goods sold (COGS) & 2,422
Please reply as soon as possible
\begin{tabular}{|rrr|} \hline Sales & 4,203 & 4,507 \\ \hline Cost of goods sold (COGS) & 2,422 & 2,633 \\ \hline Depreciation & 785 & 952 \\ \hline Interest & 180 & 196 \\ \hline Dividends & 275 & 352 \\ \hline Current assets & 2,205 & 2,429 \\ \hline Net fixed assets & 7,344 & 7,650 \\ \hline Current liabilities & 1,003 & 1,255 \\ \hline Long-term debt (LTD) & 3,106 & 2,085 \\ \hline \end{tabular} 1. The cash flow identity Cash flow from assets = Cash flow to creditors (bondholders) + Cash flow to stockholders (owners) II. Cash flow from assets Cash flow from assets = Operating cash flow - Net capital spending - Change in net working capital (NWC) where: Operating cash flow = Earnings before interest and taxes (EBIT) + Depreciation - Taxes Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation Change in NWC = Ending NWC - Beginning NWC III. Cash flow to creditors (bondholders) Cash flow to creditors = Interest pald - Net new borrowing IV. Cash flow to stockholders (owners) Cash flow to stockholders = Dividends paid - Net new equity raised XYZ's 2021 OCF(Operating Cash Flaw )=$1,722 XYZ's 2021 the change in NWC(Net Working Capital) =$28 XYZ's 2021 Cash Flow to stockholders =$725 To check "The Cash Flow Identity", Mr. K who is a financial manager of XYZ calculated as follows: [A] To obtain NCS(Net Capital Spending) in 2021, he calculated the change in net fixed assets for 2020 and 2021 , resulting in +$306(=7,6507,344). [B] To obtain Cash Flow to creditors in 2021, he calculated the change in LTD for 2020 and 2021, resulting $1,021(=2,0853,106). (3) Fill in the blank for "The Cash Flow Identity" for 2021. (2pt) OCF - the change in NWC - NCS = CF to creditors + CF to stockholders 1.722(28)+(725)+= 1.750+(725) "The Cash Flow Identity" finally holds! (in other words, LHS = RHS) fill the blank
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