Answered step by step
Verified Expert Solution
Question
1 Approved Answer
use the financial statements provided to calculate the following items: 1. Operating cash flow for each year, What does operating cash flow tell you? Is
use the financial statements provided to calculate the following items:
1. Operating cash flow for each year, What does operating cash flow tell you? Is the operating cash flow concerning?
2. Cash flow from assets for 2021, What does cash flow from assets tell you about its growth?
3. Cash flow to creditors for 2021 and Cash flow to stockholders for 2021.
Use information below to answer the 3 questions. Please explain how you got the answer THANKS!
Balance sheet for 2020 and 2021 ($ in millions)
2020 | 2021 | ||
Current liabilities | |||
Accounts payable | $ 609 | $ 539 | |
Notes payable | 362 | 410 | |
Total | $ 971 | $ 949 | |
Long-term debt | $ 15,665 | $ 16,290 | |
Owners' equity | |||
Common stock and | $ 2,000 | $ 2,625 | |
paid-in surplus | |||
Retained earnings | 936 | $ 1,217 | |
Total | $ 2,936 | $ 3,842 | |
Total liabilities and equity | $ 19,572 | $ 21,081 |
2020 | 2021 | ||
Current assets | |||
Cash | $ 205 | $ 317 | |
Accounts receivable | 445 | 557 | |
Inventory | 35 | 91 | |
Total | $ 685 | $ 966 | |
Fixed assets | |||
Net plant and equipment | $ 18,887 | $ 20,115 | |
Total assets | $ 19,572 | $ 21,081 |
Income statement ($ in millions)
2020 | 2021 | ||||
Sales | $ 11,133 | $ 12,581 | |||
Cost of goods sold | $ 5,010 | $ 5,662 | |||
Depreciation | $ 891 | $ 1,007 | |||
Earnings before interest and taxes | $ 778 | $ 878 | |||
Interest paid | $ 446 | $ 504 | |||
Taxable income | $ 332 | $ 374 | |||
Taxes(25%) | $ 83 | $ 94 | |||
Net income | $ 249 | $ 281 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started