Question

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?

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Answer #1

a)

b)

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