Question

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 debt of $1.73 million. The 2015 income statement showed an interest expense of $185,000. What was the firm’s cash flow to creditors during 2015?

9. Cash Flow to Stockholders The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed $510,000 in the common stock account and $3.6 million in the additional paid-in surplus account. The 2015 balance sheet showed $545,000 and $3.85 million in the same two accounts, respectively. If the company paid out $275,000 in cash dividends during 2015, what was the cash flow to stockholders for the year?

14. Calculating Total Cash Flows Schwert Corp. shows the following information on its 2015 income statement: sales 5 $215,000; costs 5 $117,000; other expenses 5 $6,700; depreciation expense 5 $18,400; interest expense 5 $10,000; taxes 5 $25,370; dividends 5 $9,500. In addition, you’re told that the firm issued $8,100 in new equity during 2015 and redeemed $7,200 in outstanding long-term debt. a. What is the 2015 operating cash flow? b. What is the 2015 cash flow to creditors? c. What is the 2015 cash flow to stockholders? d. If net fixed assets increased by $28,400 during the year, what was the addition to net working capital (NWC)

***can you please provide excel formulas***

Answer 1

(2) Sales = $ 435000

Less: Costs = $ 216000

EBITDA = $ 219000

Less: Depreciation Expense = $ 40000

EBIT = $ 179000

Less: Interest Expense = $ 21000

Profit Before Tax (PBT) = $ 158000

Less: Tax @ 35% = 0.35 x 158000 = $ 55300

Net Income = $ 102700

Less: Cash Dividends Paid = $ 30000

Addition to Retained Earnings = $ 72700

NOTE: Please raise separate queries for solutions to the remaining unrelated questions, as one query is restricted to the solution of only one complete question with up to four sub-parts.