Volbeat Corp. shows the following information on its 2015 income statement: sale

Question

Volbeat Corp. shows the following information on its 2015 income statement: sales = $390,000; costs = $295,000; other expenses = $7,900; depreciation expense = $19,900; interest expense = $14,600; taxes = $18,410; dividends = $12,000. In addition, you’re told that the firm issued $6,100 in new equity during 2015 and redeemed $4,600 in outstanding long-term debt.

What is the 2015 operating cash flow? (Do not round intermediate calculations.)

  

  

What is the 2015 cash flow to creditors? (Do not round intermediate calculations.)

  

  

What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.)

  

  

If net fixed assets increased by $22,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.)

  

a.

What is the 2015 operating cash flow? (Do not round intermediate calculations.)

Explanation / Answer

a. the operating cash flow is as shown below:

The Operating cash flow = $54,090

b. Cash flow to creditors = Interest payout + the princiapl repayment of debt = 14,600 + 4,600 = $19,200

c. Cash flow to stock holders = Dividend payout - new equity issued = 12,000 -6,100 = 5,900

d. NWC = 390,000 - 295,000 - 7900 - 14600 - 18410 - 12000 + 6100 - 4600 - (19900 + 22000) = 1,690

Sales 390000 Costs 295000 Expenses 7900 Depreciation 19900 Interest 14600 EBIT 52600 Taxes 18410 Net Income 34190 Add back depreciation 19900 Operating cash flow 54090

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