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Sunset Boards currently pays out 50% of net income as dividends and has a 20% ta

ID: 2377243 • Letter: S

Question

Sunset Boards currently pays out 50% of net income as dividends and has a 20% tax rate.

                                                                                                  

COGS                                  2013:   $169,969 /                                        2014:  $214,607

Cash                                    2013:  24,524    /                                          2014:   26,056

Depreciation                         2013:  47,980     /                                       2014:   54,230

Interest Expense                  2013: 10,442      /                                       2014:  11,954

Selling & Admin Expenses   2013:   33,425    /                                        2014:  43,626

Accounts Payable                 2013:  43,344     /                                       2014:  48,090

Net Fixed Assets                  2013:   211,680   /                                     2014:   264,021

Sales                                    2013:   333,426     /                                   2014:   406,427

Accounts Receivable            2013:  17,378    /                                        2014:  22,542

Notes Payable                       2013:  19,757   /                                         2014:   21,571

Long-term Debt                     2013:  106,848   /                                       2014:  119,976

Inventory                              2013: 36,570        /                                     2014:  50,185

New Equity                           2013:  0              /                                       2014:  20,160

Prepare:

1.  An income statement for 2013 & 2014

2.  A balance sheet for 2013 & 2014

3.  Operating cash flow for each year

4.  Cash flow from assets for 2014

5.  Cash flow to creditors for 2014

6.  Cash flow to stockholders for 2014

How would you describe Sunset Boards' cash flows for 2014?  

This question is from Essentials of Corporate Finance 8th Edtion.  Please don't copy & paste answers that have previously been posted for the 7th edition as the figures have changed.


Explanation / Answer

cash

24524

Account payable

43344

Account receivable

17378

Notes payable

19757

inventory

36570

Current liabilities

63101

Current assest

78472

Long tern debt

106848

Net fixed assest

211680

Owners equity

120203

Total assets

290152

Total liability and equity

290152

Equity = $290,152

cash

24524

Account payable

43344

Account receivable

17378

Notes payable

19757

inventory

36570

Current liabilities

63101

Current assest

78472

Long tern debt

106848

Net fixed assest

211680

Owners equity

120203

Total assets

290152

Total liability and equity

290152

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