$588 $493 $182 -$428 $1,168 Lazy Day, Inc 2013 2014 Cash dollar 85 dollar 88 Sal

Question

$588 $493 $182 -$428 $1,168 Lazy Day, Inc 2013 2014 Cash dollar 85 dollar 88 Sales 9,870 10,360 Inventory 1,220 1,340 Depreciation 990 1,0 15 Cost of goods sold 4,920 5,210 Accounts payable 1,170 1,240 Long-term debt 3,500 4,150 Shareholders? equity 3,734 4,227 Accounts receivable 609 584 Fixed assets 6,490 7,605 Interest expense 250 265 Selling and general expenses 2,570 2,850 Taxes 520 345 What is the cash flow to stockholders, CF(S), for 2014? dollar588 dollar493 dollar182 --dollar428 dollar1,168

Explanation / Answer

EBIT = $10,360 - 5,210 - 2,850 - 1,015 = $1,285

Operating cash flow = $1,285 + 1,015 - 345 = $1,955

Additions to net working capital = ($88 + 584 + 1,340 - 1,240) - ($85 + 609 + 1,220 - 1,170) = $28

Net capital spending = $7,605 - 6,490 + 1,015 = $2,130
CF(A) = $1,955 - 28 - 2,130 = -$203
CF(B) = $265 - ($4,150 - 3,500) = -$385
CF(S) = -$203 - (-$385) = $182

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