Question
You are given the following information: 2018 Sales $23,000 Cost of goods sold $16,000 Depreciation expense $4,000 Interest $1,800 Dividends $1,300 Tax rate 35% New
| You are given the following information: 2018 | |
| Sales | $23,000 |
| Cost of goods sold | $16,000 |
| Depreciation expense | $4,000 |
| Interest | $1,800 |
| Dividends | $1,300 |
| Tax rate | 35% |
| New debt issuance | $2,000 |
| 2017 | 2018 | |
| Current assets | $4,800 | $5,900 |
| Current liabilities | $2,700 | $3,200 |
| Net fixed assets | $14,000 | $17,000 |
a. Calculate the operating cash flow for 2018. (Hint: Taxes = Earnings before taxes x Tax rate) write your calculations for all
b. Calculate the cash flow from assets for 2018.
c. Calculate the cash flow to creditors and the cash flow to shareholders for 2018.
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Inside And Outside Liquidity
Authors: Bengt Holmstroem, Jean Tirole
1st Edition
0262518538, 9780262518536
