Jetson Spacecraft Corp. shows the following information on its 2011 income state

Question

Jetson Spacecraft Corp. shows the following information on its 2011 income statement: sales = $206,000; costs = $123,000; other expenses = $7,900; depreciation expense = $14,000; interest expense = $13,100; taxes = $16,800; dividends = $10,000. In addition, you

Jetson Spacecraft Corp. shows the following information on its 2011 income statement: sales = $206,000; costs = $123,000; other expenses = $7,900; depreciation expense = $14,000; interest expense = $13,100; taxes = $16,800; dividends = $10,000. In addition, you

Explanation / Answer

Part a:

Operating Cash Flow = 206,000 - 123,000 - 7,900 - 16800 = 58300
Part b:

Cash Flow to Creditors = 13100 + 3100 = 16200

Part c:

Cash Flow to Stockholders = 10000 - 4600 = 5400
Part d:

CFA = 16200 + 5400 = 21600
CFA = Operating Cash Flow - Net Capital Spending - Change in NWC
Net capital spending = 22000 (Increase in NFA) + 14000 (Depreciation) = 36000
Replacing values in above formula:
21600 = 58300 - 36000 - Change in NWC
Change in NWC = 58300 - 36000 - 21600 = 700

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