Question

Schwert Corp. shows the following information on its 2017 income statement: sales = $227,000; costs =...

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.)

Homework Answers

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..

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Weiland Co. shows the following information on its 2016 income statement: sales = $153,000; costs =...
Weiland Co. shows the following information on its 2016 income statement: sales = $153,000; costs = $81,900; other expenses = $5,200; depreciation expense = $10,900; interest expense = $8,400; taxes = $16,330; dividends = $7,200. In addition, you're told that the firm issued $2,600 in new equity during 2016 and redeemed $3,900 in outstanding long-term debt.    a. What is the 2016 operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,...
Weiland Co. shows the following information on its 2016 income statement: sales = $156,500; costs =...
Weiland Co. shows the following information on its 2016 income statement: sales = $156,500; costs = $81,200; other expenses = $4,500; depreciation expense = $10,200; interest expense = $7,700; taxes = $18,515; dividends = $7,550. In addition, you're told that the firm issued $3,300 in new equity during 2016 and redeemed $5,300 in outstanding long-term debt.    a. What is the 2016 operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,...
Weiland Co. shows the following information on its 2016 income statement: sales = $159,000; costs =...
Weiland Co. shows the following information on its 2016 income statement: sales = $159,000; costs = $80,700; other expenses = $4,000; depreciation expense = $9,700; interest expense = $7,200; taxes = $20,090; dividends = $7,800. In addition, you're told that the firm issued $3,800 in new equity during 2016 and redeemed $6,300 in outstanding long-term debt. a. What is the 2016 operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)...
Ogden Enterprises. shows the following information on its 2018 income statement: sales = $167,000; costs =...
Ogden Enterprises. shows the following information on its 2018 income statement: sales = $167,000; costs = $88,600; other expenses = $4,900; depreciation expense = $11,600; interest expense == $8,700; taxes = $18,620; dividends = $9,700. In addition, you’re told that the firm issued $2,900 in new equity during 2018, and redeemed $4,000 in outstanding long-term debt. a. What is the 2018 operating cash flow? b. What is the 2018 cash flow to creditors? c. What is the 2018 cash flow...
Jetson Spacecraft Corp. shows the following information on its 2009 income statement: sales = $202,000; costs...
Jetson Spacecraft Corp. shows the following information on its 2009 income statement: sales = $202,000; costs = $96,000; other expenses = $4,800; depreciation expense = $9,000; interest expense = $14,100; taxes = $23,430; dividends = $9,900. In addition, you're told that the firm issued $7,300 in new equity during 2009 and redeemed $8,900 in outstanding long-term debt. (a) What is the 2009 operating cash flow? (b) What is the 2009 cash flow to creditors? (c) What is the 2009 cash...
Schwert Corp. shows the following information on its 2015 statement of comprehensive income: sales = $167,000;...
Schwert Corp. shows the following information on its 2015 statement of comprehensive income: sales = $167,000; costs = $91,000; other expenses = $5,400; depreciation expense = $8,000; interest expense = $11,000; taxes = $18,060; dividends = $9,500. In addition, you’re told that the firm issued $7,250 in new equity during 2015 and redeemed$7,100 in outstanding long-term debt. 1. What is the 2015 operating cash flow? 2. What is the 2015 cash flow to creditors? 3. What is the 2015 cash...
Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $215,000; Costs...
Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $215,000; Costs = $104,000; Other expenses = $5,800; Depreciation expense = $9,000; Interest expense = $14,000; Taxes = $28,770; Dividends = $9,900. In addition, you're told that the firm issued $8,000 in new equity during 2018 and redeemed $9,600 in outstanding long-term debt. a. What is the 2018 operating cash flow? b. What is the 2018 cash flow to creditors?
2. Building an Income Statement Shelton, Inc., has sales of $435,000, costs of $216,000, depreciation expense...
2. Building an Income Statement Shelton, Inc., has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax rate of 35 percent. What is the net income for the firm? Suppose the company paid out $30,000 in cash dividends. What is the addition to retained earnings? 8. Cash Flow to Creditors The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $1.625 million, and the 2015 balance sheet showed long-term...
Blue Diamond Industries had the following operating results for 2017: sales = $29,580; cost of goods...
Blue Diamond Industries had the following operating results for 2017: sales = $29,580; cost of goods sold = $19,610; depreciation expense = $5,140; interest expense = $2,490; dividends paid = $1,300. At the beginning of the year, net fixed assets were $17,030, current assets were $5,830, and current liabilities were $3,400. At the end of the year, net fixed assets were $20,510, current assets were $7,604, and current liabilities were $3,950. The tax rate was 30 percent. a. What was...
2015 income statement: sales = $388,808; costs = $172,679; other expenses = $8,133; depreciation expense =...
2015 income statement: sales = $388,808; costs = $172,679; other expenses = $8,133; depreciation expense = $19,452; interest expense = $14,342; taxes = $18,835; dividends = $10,848. In addition, you’re told that the firm issued $6,065 in new equity during 2015 and redeemed $5,905 in outstanding long-term debt. If net fixed assets increased by $22,525 during the year, what was the addition to NWC?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT