Weiland Co. shows the following information on its 2014 income statement: sales
ID: 2383780 • Letter: W
Question
Weiland Co. shows the following information on its 2014 income statement: sales = $162,500; costs = $80,000; other expenses = $3,300; depreciation expense = $9,000; interest expense = $6,500; taxes = $22,295; dividends = $8,150. In addition, you're told that the firm issued $4,500 in new equity during 2014, and redeemed $7,700 in outstanding long-term debt.
1. What is the operating cash flow during 2014?
2. What is the cash flow to creditors during 2014?
3. What is the cash flow to stockholders during 2014?
4. Assuming net fixed assets increased by $21,200 during the year, what was the addition to NWC?
Weiland Co. shows the following information on its 2014 income statement: sales = $162,500; costs = $80,000; other expenses = $3,300; depreciation expense = $9,000; interest expense = $6,500; taxes = $22,295; dividends = $8,150. In addition, you're told that the firm issued $4,500 in new equity during 2014, and redeemed $7,700 in outstanding long-term debt.
1. What is the operating cash flow during 2014?
2. What is the cash flow to creditors during 2014?
Explanation / Answer
Change in NWC= Change in (Current Assets-Liabilities)
Fixed Assets is not a Current Assets.
However if you ask Change in Net Capital Spending, it will be 21200.
Operating Cash Flow Sales 162500 Cost of goods sold 80000 Other Expenses 3300 Depreciation 9000 EBIT 70200 Less: Taxes 22295 Add :Depreciation 9000 Operating Cash Flow 56905Related Questions
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