Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following income statement and balance sheets should be used for Questions 1 through 5 Delco Accents, Inc. 2022 Income Statement ($ in millions)

The following income statement and balance sheets should be used for Questions 1 through 5

Delco Accents, Inc. 2022 Income Statement ($ in millions)

         Net sales                                       $12,456

        Less: Cost of goods sold                   6,762

        Less: Depreciation                            1,903

        Earnings before interest and taxes   3,791

        Less: Interest paid                               825

        Earnings before taxes                      2,966

        Less: Taxes                                      1,038

        Net income                                     $1,928

        Addition to retained earnings         $ 1,213

        Dividends paid                                     715

Delco Accents, Inc. 12/31/21 and 12/31/22 Balance Sheet ($ in millions)

                                       2021           2022                                                  2021          2022

          Cash                   $1,596        $1,883               Accounts payable    $1,261       $1,488

          Accounts rec.        2,698          3,184               Notes payable           2,852         3,365

           Inventory              1,541         1,818                   Total                     $4,113       $4,853

             Total                 $5,835       $6,885                 Long-term debt        7,372         7,624

          Net fixed assets  21,872       23,096                Common stock          5,731        5,800

Retained earnings   10,491       11,704

           Total assets       $27,707    $29,981                   Total liabilities     $27,707     $29,981

   

What is the firm's operating cash flow for 2022?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

ANSWER IS To calculate the operating cash flow OCF we use the formula OCF E... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

3rd edition

9780077506902, 78025540, 77506901, 978-0078025549

More Books

Students also viewed these Finance questions