my answer is not correct please find the correct one. The info posted is the onl
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my answer is not correct please find the correct one. The info posted is the only infor given to me
Chapter 2 Homework Question 9 (of 12) 9. value: 10.00 points Volbeat Corp. shows the following information on its 2015 income statement: sales $222,000; costs $132,000; other expenses = $7,900; depreciation expense = $19,700; interest expense-$14,000; taxes- $16,940, dividends = $11,000. In addition, you're told that the firm issued S5500 in new equity during 2015 and redeemed $4,000 in outstanding long-term debt. a. What is the 2015 operating cash flow? (Do not round intermediate calculations.) Operating cash flow b. What is the 2015 cash flow to creditors? (Do not round intermediate calculations.) Cash flow to creditors c. What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.) Cash flow to stockholders d. If net fixed assets increased by $20,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) Addition to NWCExplanation / Answer
Volbert Corpn Sales $ 222,000.00 Cost $ 132,000.00 Depreciation $ 19,700.00 Other Expenses $ 7,900.00 EBIT $ 62,400.00 Interest $ 14,000.00 Taxable Income $ 48,400.00 Taxes $ 16,940.00 Net Income $ 31,460.00 Dividends $ 11,000.00 Additional to retained earnings $ 20,460.00 Operating Cash Flow=EBIT+Depreciation-Taxes Operating Cash Flow=($62400+$19700-$16940) $ 65,160.00 Cash Flow to creditors=Interest Paid-Net New borrowings Net New Borrwings=(Ending long term debt-Beginning long term debt) Net New Borrwings=(Ending long term debt-Beginning long term debt) Cash Flow to creditors=($14000-(-$4000) $ 18,000.00 Cash Flow to shareholder=Dividend-(Net new equity raised) Net New Equity Raised=(Ending common stock,additional paid in capital & treasury stock)-(Beginning common stock,additional paid in capital & treasury stock) Cash Flow to stockholders=($11000-$5500) $ 5,500.00 Cash Flow to Assets=Cash flow to creditors+Cash flow to shareholders Cash Flow to Assets=$18000+$5500 $ 23,500.00 Cash Flow to Assets=Operating Cash Flow-Net Capital Spending-Change in Net Working Capital Net Capital Spending=(Depreciation+Increase in Net fixed Assets) Net Capital Spending=($19700+$20000) $ 39,700.00 Cash Flow to Assets=Operating Cash Flow-Net Capital Spending-Change in Net Working Capital $23500=$65160-$39700-(Change in Net Working Capital) Addition to NWC $ 1,960.00
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