Question
Volbeat Corp. shows the following information on its 2015 income statement: sales = $403,000; costs = $305,000; other expenses = $7,900; depreciation expense = $18,200;
Volbeat Corp. shows the following information on its 2015 income statement: sales = $403,000; costs = $305,000; other expenses = $7,900; depreciation expense = $18,200; interest expense = $13,800; taxes = $20,335; dividends = $11,000. In addition, youre told that the firm issued $5,300 in new equity during 2015 and redeemed $3,800 in outstanding long-term debt. |
a. | What is the 2015 operating cash flow? (Do not round intermediate calculations.) |
Operating cash flow | $ 69,765 |
b. | What is the 2015 cash flow to creditors? (Do not round intermediate calculations.) |
Cash flow to creditors | $ 17600 |
c. | What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.) |
Cash flow to stockholders | $ 5,700 |
d. | If net fixed assets increased by $28,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) |
Addition to NWC | $ |
I ONLY need help with part d. I know that the first step is to find the cash flow from assets. For that I got 23,300 from adding up my answers from b and c. I know now I am supposed to figure out net capital spending where the formula is ncs= depreciation + increase in fixed assets, however I do not know how to find the increase in fixed assets or how to finish this problem. Please explain in detail!
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