12. Use the data from the following fnancial tatements 3, The company paid inter
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12. Use the data from the following fnancial tatements 3, The company paid interest espemse of $17,400 for 201 and had an ovr rate of 40% for 2011. What is the operating cash flow (OCF)? What is the net capital spending (NCS) ? Partial Income Statement Year Ending 2011 Sales revenue Cost of goods sold Fixed costs Selling, general, and administrative expenses $349,900 $142,000 $42,800 $28,100 $46.100 Partial Balance Sheet 12/31/2010 ASSETS Cash Accounts receivable Inventories Fixed assets LIABILITIES S 16,000!Notes payable $28,000!Accounts payable $48,200 Long-term debt $13,900 $19,000 $189,800 $368,200 OWNERS EQUITY $140,1Retained earnings $81,900 Common stock $132,000 Intangible assets Partial Balance Sheet 12/31/2011 LIABILITIES ASSETS $26,100 Notes payable $19.200 Accounts payable $53.200|Long-term debt 447,900 OWNERS' EQUITY $12,100 $24,100 $162,000 Accounts recelvable Fixed assets Retained eanings $181,800 $82,000Common stock Intangible assetsExplanation / Answer
Income statement for the year ended 2011
Particulars Amount($)
Net sales $349900
Cost of goods sold ($142000)
Gross profit $207900
Fixed cost ($42800)
Selling and administrative expenses ($28100)
Depreciation ($46100)
Operating income $90900
Interest expense ($17400)
Earnings before tax $73500
Tax rate 40% ($29400)
Net income $44100.
1.
Cash flows from operating activities:
Net income $44100
Depreciation $46100
Adjustments:
Decrease in accounts receivable $8800
Increase in inventory ($5000)
Decrease in notes payable ($1800)
Increase in accounts payable $5100
Net cash flows from operating $97300
activities
2.
Net capital spending = $447900 - $368200
= $79700.
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