Question

Freeman, Inc., reported the following financial statements for the last two years.

FREEMAN, INC.
2017 Income Statement
Sales	$	565,320
Cost of goods sold		273,965
Selling & administrative		124,721
Depreciation		54,564
EBIT	$	112,070
Interest		19,308
EBT	$	92,762
Taxes		48,236
Net income	$	44,526
Dividends	$	10,800
Addition to retained earnings	$	33,726

FREEMAN, INC. Balance Sheet as of December 31, 2016
Cash	$	13,440		Accounts payable	$	23,988
Accounts receivable		18,982
Inventory		13,806
Current assets	$	46,228		Long-term debt		135,600
Net fixed assets		344,438		Owners' equity		231,078
Total assets	$	390,666		Total liabilities and owners' equity	$	390,666

FREEMAN, INC. Balance Sheet as of December 31, 2017
Cash	$	14,426		Accounts payable	$	27,002
Accounts receivable		21,087
Inventory		22,766
Current assets	$	58,279		Long-term debt		153,200
Net fixed assets		406,299		Owners' equity		284,376
Total assets	$	464,578		Total liabilities and owners' equity	$	464,578

Requirement 1:

Calculate the operating cash flow. (Do not round intermediate calculations.)

Operating cash flow              $

Requirement 2:

Calculate the change in net working capital. (Do not round intermediate calculations.)

Change in net working capital             $

Requirement 3:

Calculate the net capital spending. (Do not round intermediate calculations.)

Net capital spending             $

Requirement 4:

Calculate the cash flow from assets. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

Cash flow from assets             $

Requirement 5:

Calculate the cash flow to creditors. (Do not round intermediate calculations.)

Cash flow to creditors             $

Requirement 6:

Calculate the cash flow to stockholders. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

Cash flow to stockholders             $

Answer 1

Req 1.
Operating cashflows:
Net icnome			44526
Add: Depreciation			54564
Add: Interest			19308
Operating cashflows:			118398
Req 2.
Changes in Net Working capital:
Increase in Cash				-986
Increase in Accounts receivable				-2105
Increase in Inventory				-8960
Increase in Accounts Payable				3014
Change in NWC				-9037
Req 3.
Net Capital Spending:
Purchase (344438-54564-406299)				-116425
Req 3
Cashflows from Assets = 118398-9037-116425 = -7064
Req 4.
Interest paid			19308
Borrowing from LTD			-17600
Cashflows to creditors			1708
Req 5.
Dividend paid			10800
issue of Comon Stock			-19572
(231078+33726-284376)
Cashflows to Stockholde			-8772