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What is the cash flow of the firm, or CF(A), for 2017? Qwest Company 2017 Income...

What is the cash flow of the firm, or CF(A), for 2017? Qwest Company 2017 Income Statement Net sales 58,000.00 Cost of goods sold 40,600.00 Selling, general, and administrative expenses 2,900.00 Depreciation 2,320.00 Earnings before interest and taxes 12,180.00 Interest 1,160.00 Pretax income 11,020.00 Taxes 2755.00 Net income 8,265.00 Qwest Company 2016 and 2017 Balance Sheets 2016 2017 2016 2017 Cash 2120 2436 Accounts payable 6,241 6,394 Accounts receivable 3,006 3,422 Accrued expenses 3,680 3,745 Inventory 5,310 5,950 Current liabilities 9,921 10,139 Current assets 10,436 11,808 Long-term debt 17,536 20,291 Net fixed assets 32,365 34,600 Owners' equity 15,344 15,978 Total assets 42,801 46,408 Total liabilities and equity 42,801 46,408 $3,174 -$5,012 -$1,766 $6,036 $1,743

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Answer #1

Answer:

Cash Flow from Assets = Operating Cash Flow – Net Capital Spending – Change in Net Working Capital

Operating Cash Flow (OCF) = EBIT + Depreciation –Taxes
Operating Cash Flow (OCF) = $12,180 + $2,320 - $2,755
Operating Cash Flow (OCF) = $11,745

Net Capital Spending = Ending Fixed Assets – Beginning Fixed Assets + Depreciation
Net Capital Spending = $34,600 - $32,365 + $2,320
Net Capital Spending = $4,555

Change in NWC = Ending NWC – Beginning NWC
Change in NWC = ($11,808 - $10,139) – ($10,436 - $9,921)
Change in NWC = $1,669 - $515
Change in NWC = $1,154

Cash Flow from Assets = $11,745 - $4,555 - $1,154
Cash Flow from Assets = $6,036

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