Titan Football Manufacturing had the following operating results for 2010: sales

Question

Titan Football Manufacturing had the following operating results for 2010: sales = $19,790; cost of goods sold = $13,970; depreciation expense = $2,360; interest expense = $340; dividends paid = $560. At the beginning of the year, net fixed assets were $14,300, current assets were $2,950, and current liabilities were $2,060. At the end of the year, net fixed assets were $16,940, current assets were $3,300, and current liabilities were $2,150. The tax rate for 2010 was 40 percent.

Requirement 1:
What is net income for 2010? (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount (e.g., 32))

Net income $

Requirement 2:
What is the operating cash flow during 2010? (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount (e.g., 32))

Operating cash flow $

Requirement 3:

What is the cash flow from assets during 2010? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar amount (e.g., 32))

Cash flow from assets $

Requirement 4:
Assume no new debt was issued during the year.

(a) What is the cash flow to creditors during 2010? (Do not include the dollar sign ($).)

Cash flow to creditors $

(b)

What is the cash flow to stockholders during 2010? (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar amount (e.g., 32))

Cash flow to stockholders $

Explanation / Answer

sales = $19,790

Less: cost of goods sold = $13,970

operating profit 5820

Less: depreciation expense = $2,360

Less: interest expense = $340;

EBT 3120

Tax(40%) 1248

EAT/ Net Income 1872 Requirement 1

Add Dep 2360

Add Interest 340

Cashflow 4572 Requirement 2

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