Understanding cash flow is a critical concept that you must get comfortable with. Please use the following F$/$S in answering the next few questions.

What was the Net Cash Flow to the Debtholders in $2020?$

Panda Corp

$2020$ Income Statement

$($$ Millions$)$

Net Sales

$ $2,105$

Cost of Goods Sold

$ $1,150$

Depreciation

$ $80$

Earnings before Interest & Taxes $($EBIT$)$

$ $875$

Interest Paid

Flag$\_$question

A company had sales of $$600$ and costs of $$300.$ Depreciation was an additional $$150,$ and interest paid was $$30.$ Taxes were $40\%$ of pretax income.

Dividends were $$30.$ Beginning net fixed assets were $$500$ and ending net fixed assets were $$750.$ Net new borrowing is $$248.$ The company started the

year with a net working capital of $$510$ and ended with $$550.$ No shares of stock were issued that year.

A$.$ Calculate net income $($nearest dollar without dollar sign $($$$)$ or comma, e$.$g$.15000.$ Negative cash flow is $-15000)$:

B$.$ Calculate operating cash flow $($nearest dollar without dollar sign $($$$)$ or comma, e$.$g$.15000)$ Negative cash flow is $-15000)$:

C$.$ Calculate net capital spending $($nearest dollar without dollar sign $($ $ $)$ or comma, e$.$g$.15000)$ Negative cash flow is $-15000)$:

D$.$ Calculate change in net working capital $($nearest dollar without dollar sign $($$$)$ or comma, e$.$g$.15000)$ Negative cash flow is $-15000)$:

E$.$ Calculate cash flow from assets $($nearest dollar without dollar sign $($$$)$ or comma, e$.$g$.15000)$ Negative cash flow is $-15000)$:

F$.$ Calculate cash flow to shareholders $($nearest dollar without dollar sign $($$$)$ or comma, e$.$g$.15000)$ Negative cash flow is $-15000)$:

G$.$ Calculate cash flow to bondholders $($nearest dollar without dollar sign $($$$)$ or comma, e$.$g$.15000)$ Negative cash flow is $-15000)$:

Compute Nlarginal & Average Rates

Assume the taxpayer has $$165,000$ in $2020$ taxable income.

Marginal tax rates $($tax rates on the last dollar of income$)$:

Federal: $29\mathrm{.}00\%$

Provincial: $16\mathrm{.}80\%$

Combined: $,29\mathrm{.}00\%+16\mathrm{.}80\%=45\mathrm{.}8\%$

Average Tax Rate $=$ Total Tax Paid $\frac{?}{?}$ Total Income

$49,\frac{239\mathrm{.}42}{165},000=29\mathrm{.}84\%$

Note: total tax paid is federal tax $+$ provincial tax