Question
Salza Technology Corporation increased its sales from $375,000 in 2012 to $450,000 in year 2013 as is shown in the firms income statements presented below.
Salza Technology Corporation increased its sales from $375,000 in 2012 to $450,000 in year 2013 as is shown in the firms income statements presented below. LeAnn Sands, chief executive officer (CEO) and founder of the firm expressed concern that the cash account and the firms marketable securities declined substantially between 2012 and 2013. Salzas complete balance sheets are also shown below. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology.
Income statement (in $ Thousands) | 2013 | 2012 | ||
Net sales | 450.00 | 375.00 | ||
Less: cogs | 270.00 | 225.00 | ||
Gross profit | 180.00 | 150.00 | ||
Less: operating exp | 46.00 | 46.00 | ||
Less: Depr | 30.00 | 25.00 | ||
EBIT | 104.00 | 79.00 | ||
Less: Interest | 4.00 | 4.00 | ||
Income before tax | 100.00 | 75.00 | ||
Less: Income taxes | 30.00 | 20.00 | ||
Net income | 70.00 | 55.00 | ||
Cash dividend | 20.00 | 17.00 | ||
Addition to retained earnings | 50.00 | 38.00 | ||
Balance sheet (in $ Thousands) | ||||
2013 | 2012 | |||
Cash | 16.00 | 39.00 | ||
Account receivable | 80.00 | 50.00 | ||
Inventories | 204.00 | 151.00 | ||
Current asset | 300.00 | 240.00 | ||
Gross fixed asset | 290.00 | 200.00 | ||
less accumuled depr | -125.00 | -95.00 | ||
Net fixed asset | 165.00 | 105.00 | ||
Total assets | 465.00 | 345.00 | ||
Account payable | 45.00 | 30.00 | ||
Bank loan | 27.00 | 20.00 | ||
Accrued liabilities | 23.00 | 10.00 | ||
Total current liabilities | 95.00 | 60.00 | ||
Long-term debt | 15.00 | 15.00 | ||
Total liabilities | 110.00 | 75.00 | ||
Common stock | 120.00 | 85.00 | ||
Retained earnings | 235.00 | 185.00 | ||
Total equity | 355.00 | 270.00 | ||
Total liabilities and equity | 465.00 | 345.00 |
1. How much is Operating cash flow?
2. How much is Net Capital Spending (NCS)?
3. How much is the Net operating Working Capital (NOWC) for year 2013?
4. How much is change in Net Operating Working Capital?
5. How much is Cash flow from Asset?
6. How much is cash flow to creditors?
7. How much is Cash Flow to Shareholders?
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