Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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_2

Step: 3

blur-text-image_3

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

Essentials Of Accounting For Governmental And Not-for-Profit Organizations

Authors: Paul A Copley

11th Edition

0078025451, 9780078025457

More Books

Students also viewed these Finance questions

Question

=+a. Why does Qualcomm report three different inventories?

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago