Volbeat Corp. shows the following information on its 2015 income statement: sale
ID: 2730700 • Letter: V
Question
Volbeat Corp. shows the following information on its 2015 income statement: sales = dollar 390, 000; costs = dollar 295,000; other expenses = dollar 7,900; depreciation expense = dollar 19,900; interest expense = dollar 14,600; taxes = dollar 18,410; dividends = dollar 12,000. In addition, you're told that the firm issued dollar 6,100 in new equity during 2015 and redeemed dollar 4,600 in outstanding long-term debt. What is the 2015 operating cash flow? (Do not round intermediate calculations.) Operating cash flow dollar What is the 2015 cash flow to creditors? (Do not round intermediate calculations.) Cash flow to creditors dollar What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.) Cash flow to stockholders dollar If net fixed assets increased by dollar 22,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) Addition to NWC dollarExplanation / Answer
Volbeat Corp 2015 Income Statement Details Amt $ Sales 390,000 Costs 295,000 Other Expenses 7,900 Depreciation Expense 19,900 Interest Expense 14,600 Taxable Income 52,600 Taxes 18,410 Net Income= 34,190 a 2015 opearting Cash flow Net Income 34,190 Add Back depreciation 19,900 Operating Cash flow $ 54,090 b Cash flow to creditors:=Interest paid- net new borrowing =14600+4600= 19,200 c Cash flow to stockholders= Dividend paid -Net new equity raised = 12000-6100=5900 So Cash flow to stock holders = 5,900 d Net Cash flow from Assets =Cash flow to stockholders+Cash flow to creditors=19200+5900= $ 25,100 Assume change in net working capital = A Cash flow from Assets=Opearting cash flow-net capital spending-changes in net working capital =54090-22000-A= 25,100 A =6990 So Change in Net working Capital = $ 6,990.0
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