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Problem 1 Using the information provided for HMDG Corporation, answer the following questions: 1. What is operating cash flow? 2. What is cash flow
Problem 1 Using the information provided for HMDG Corporation, answer the following questions: 1. What is operating cash flow? 2. What is cash flow to creditors? 3. What is cash flow to shareholders? HMDG Corporation Statement of Comprehensive Income December 31, 2019 Revenue 1,800,000 Expenses 1,150,000 Depreciation expense 45,000 EBIT 605,000 Interest Expense 38,000 EBT 567,000 Income tax (30%) 170,100 Net income 396,900 Additional information: Dividends paid New shares issued $85,000 $30,000 Repaid long term note payable $25,000 New loan received $40,000
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