Take Test: HW2 course web.pitt.ed 2167 ECON QUESTION 18 Hilltop Industries 2007

Question

Take Test: HW2 course web.pitt.ed 2167 ECON QUESTION 18 Hilltop Industries 2007 Income Statement in millions) Net sales $11,407 Less: Cost of goods sold 7,871 Less: Depreciation 509 Earnings before interest and taxes 2,027 Less: Interest paid 210 1,817 Taxable Income Less: Taxes 636 Net income 81 Hilltop Industries 2006 and 2007 Balance Sheets in millions) 2006 2007 2006 2007 Accounts payable $1,818 $1,719 Cash 276 316 Accounts rec 1,415 1,068 Notes payable Inventory 2,104 2,690 Total 250 75 $2,068 $1,794 Long-term debt Total $3,795 $4,074 3.400 3,100 Net fixed assets 5,613 6,342 Common stock 2,500 3,250 Retained earnings 1,440 2,272 Total assets $9,408 $10,416 Total liab.& equity 408 $10,416 What is the cash flow to creditors for 2007? $353 $210 $300 $510 $647 My Pitt H 2167 ECON 02 gb fri flashcards Q 5 points Sa

Explanation / Answer

cahs flow to creditors would be interest amount + change in long etrm debt hence answer is 510

210 interest + (3400-3100=300) long term debt = 210+300=510

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