Question
show work MoonStar, Inc. 2019 Income Statement ($ in millions) Net sales $900.0 Less: Cost of goods sold $350.0 Less: Depreciation expense $120.0 Less: Other
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MoonStar, Inc.
2019 Income Statement ($ in millions)
| Net sales | $900.0 |
| Less: Cost of goods sold | $350.0 |
| Less: Depreciation expense | $120.0 |
| Less: Other expenses | $90.0 |
| Earnings before interest and taxes | $340.0 |
| Less: Interest paid | $100.0 |
| Taxable Income | $240.0 |
| Less: Taxes (40%) | $96.0 |
| Net income | $144.0 |
| Dividends | $28.8 |
| Additions to Retained Earnings | $115.2 |
MoonStar, Inc.
2018 and 2019 Balance Sheets ($ in millions)
| 2018 | 2019 | 2018 | 2019 | ||
| Cash | 40.0 | 35.0 | Accounts payable | 125.0 | 137.8 |
| Accounts rec. | 210.0 | 200.0 | Notes payable | 55.0 | 55.0 |
| Inventory | 300.0 | 315.0 | Total | 180.0 | 192.8 |
| Total | 550.0 | 550.0 | Long-term debt | 655.0 | 767.0 |
| Net fixed assets | 1060.0 | 1300.0 | Common stock | 665.0 | 665.0 |
| Retained earnings | 110.0 | 225.2 | |||
| Total assets | 1610.0 | 1850.0 | Total liab.& equity | 1610.0 | 1850.0 |
(A) find the MoonStars cash flow from assets for 2019 by finding its operating cash flows, net capital spending, change in net working capital. (B) What are the MoonStars cash flow to creditors and cash flow to stockholders? Interpret the results in (A) and (B).
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Intermediate Accounting
Authors: Kin Lo, George Fisher
3rd Edition Vol. 1
9787300071374
