Question

Schwert Corp. shows the following information on its 2017 income statement: sales = $227,000; costs = $129,000; other expenses = $7,900; depreciation expense = $14,200; interest expense = $13,700; taxes = $21,770; dividends = $10,500. In addition, you’re told that the firm issued $5,200 in new equity during 2017 and redeemed $3,700 in outstanding long-term debt.

1.) What was the 2017 operating cash flow? (Do not round intermediate calculations.)

2.) What was the 2017 cash flow to creditors? (Do not round intermediate calculations.)

3.) What was the 2017 cash flow to stockholders? (Do not round intermediate calculations.)

4.) If net fixed assets increased by $30,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.)

Answer 1

EBIT=227000-129000-7900-14200=75900

What was the 2017 operating cash flow=EBIT+depreciation-taxes

=75900+14200-21770

=68330

What was the 2017 cash flow to creditors=interest-(-debt paid)

=13700+3700

=17400

What was the 2017 cash flow to stockholders=10500-5200=5300

4)

cash flow to assets or CFA=cash flow to creditors+cash flow to stockholders

=17400+5300

=22700

net capital sending=30000+14200=44200

cash flow to assets=operating cash flow-net capital sending- addition to NWC

22700=68330-44200- addition to NWC

addition to NWC=68330-44200-22700=1430 is answer

the above are answers..