Question
Sales=35,420; Cost of good sold=25,260; Depreciation expense=6,000; Interest expense=2,715;Dividends paid=2,000. At the beginning of the year, net fixed assets were 19,950, current assets were 7,065,
Sales=35,420; Cost of good sold=25,260; Depreciation expense=6,000; Interest expense=2,715;Dividends paid=2,000. At the beginning of the year, net fixed assets were 19,950, current assets were 7,065, and current liabilities were 3,938. At the end of the year, net fixed assets were 24,500, current assets were 8,690, and current liabilities were 4,680. The tax rate was 22 percent.
1. What was the operating cash flow?
2. What was the net capital spending?
3. What was the cash flow from assets?
4. If no new debt was issued during the year, what was the cash flow to creditors?
5. If no new debt was issued during the year, what was the cash flow to stockholders?
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