Zigs Industries had the following operating results for 2011: sales = $27,360; c

Question

Zigs Industries had the following operating results for 2011: sales = $27,360; cost of goods sold = $19,260; depreciation expense = $4,860; interest expense = $2,190; dividends paid = $1,560. At the beginning of the year, net fixed assets were $16,380, current assets were $5,760, and current liabilities were $3,240. At the end of the year, net fixed assets were $20,160, current assets were $7,116, and current liabilities were $3,780. The tax rate for 2011 was 34 percent.


If no new debt was issued during the year, what is the cash flow to stockholders?

I know the formula is dividends - net new equity. But how do I get net new equity

Explanation / Answer

Hi, If you like my answer rate me first...that way only I can earn points. Thanks Total assets = Current + fixed assets Total Liability = Current + fixed liability Total Equity = Total Assets - Total Liability So, Net New equity = New Total Assets - New Total Liability - Old total assets + old total liability=$19338

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