Segment 1B Q1

6. Cash Flow from Assets [LO4] Suppose a companys cash flow from assets is negative for a particular period. Is this necessarily a good sign or a bad sign?

If you need this to solve the problem here it is, I'm just not sure if it applys, if not then just ignore this part

Cash Flow From Assets Problem:

Calculate each step of the cash flow from assets based on the following information. Use the examples in the presentation as a guide.

Working Capital Accounts:

2015: Current Assets = 4,400; Current Liabilities = 1,500

2014: Current Assets = 3,500; Current Liabilities = 1,200

Fixed Assets and Depreciation:

2015: Net Fixed Assets = 3,400

2014: Net Fixed Assets = 3,100

Depreciation Expense = 400

Long-Term Debt and Equity:

2015: Long-Term Debt = 4,000; Common Stock = 400

2014: Long-Term Debt = 3,950; Common Stock = 400

Income Statement:

EBIT = 2,000

Taxes = 300

Interest Expense = 350

Dividends = 500