A company had the lolloping operating results for 2010: sales = $38,900; cost of

Question

A company had the lolloping operating results for 2010: sales = $38,900; cost of goods sold = $24,600; depreciation expense = $1,700; interest expense = $1,400; dividends paid = $1,000. At the beginning of the year, net fixed assets were $14,300, current assets were $8,700, and current liabilities were $6,600. At the end of the year, net fixed assets were $13,900, current assets were $9,200, and current liabilities were $7,400. The tax rate for 2010 was 34 percent. What is the cash flow from assets for 2010?

Explanation / Answer

Cash flow from assets = depreciation + change in net fixed assets + change in current assets

= $1700 + $(13900 - 14300) + $(9200 - 8700)

= $1800

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