Question
Thomson Corporation had the following operating results for 2019 (in 000s): sales of $30,600; cost of goods sold of $21,800; depreciation expense of $4,200; interest
Thomson Corporation had the following operating results for 2019 (in 000s): sales of $30,600; cost of goods sold of $21,800; depreciation expense of $4,200; interest expense of $1,040; dividends paid of $1,000. At the beginning of the year, net fixed assets were $23,600, current assets were $6,800, and current liabilities were $3,800. At the end of the year, net fixed assets were $25,800, current assets were $7,900, and current liabilities were $3,900. Total taxes are $1,500 ($1,424 paid, and $76 deferred).
a. What is the net income for 2019?
b. What is the operating cash flow for 2019?
c. What is the cash flow from assets for 2019? Is this possible? Explain
d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to shareholders? Explain and interpret the positive and negative signs of your answers in (a) through (d)
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