1. Create an Income Statement. Tally Corp has the following information for 2014: Sales - $235,000 Cost-$141,000 Other Expenses - $7,900 Depreciation Expense - $17,300 Interest Expense $12,900 Taxes - $19,565 Dividends - $12,300 2014 New Equity - $6,100 Net New Long-term Debt - $(4,500) Change in Fixed Assets - $25,000 2. Answer the following questions: 1. What is the 2014 Operating Cash Flow? 2. What is the 2014 Cash Flow to Creditors? 3. What is the 2014 Cash Flow to Stockholders? 4. If Net Fixed Assets increased by $25,000 during the year what is the addition to NWC?
1. Create an Income Statement. Tally Corp has the following information for 2014: Sales - $235,000 Cost-$141,000 Other Expenses - $7,900 Depreciation Expense - $17,300 Interest Expense $12,900 Taxes - $19,565 Dividends - $12,300 2014 New Equity - $6,100 Net New Long-term Debt - $(4,500) Change in Fixed Assets - $25,000 2. Answer the following questions: 1. What is the 2014 Operating Cash Flow? 2. What is the 2014 Cash Flow to Creditors? 3. What is the 2014 Cash Flow to Stockholders? 4. If Net Fixed Assets increased by $25,000 during the year what is the addition to NWC?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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![Part A: Calculating Operating Cash Flows and Net Working Capital
1. Create an Income Statement.
Tally Corp has the following information for 2014:
Sales - $235,000
Cost - $141,000
Other Expenses - $7,900
Depreciation Expense - $17,300
Interest Expense $12,900
Taxes - $19,565
Dividends - $12,300
2014 New Equity - $6,100
Net New Long-term Debt - $(4,500)
Change in Fixed Assets - $25,000
2. Answer the following questions:
1.
What is the 2014 Operating Cash Flow?
2. What is the 2014 Cash Flow to Creditors?
3. What is the 2014 Cash Flow to Stockholders?
4.
If Net Fixed Assets increased by $25,000 during the year what is the addition to NWC?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfbd4d9d-6929-4c5f-bd16-266a7f282a62%2F8910f742-e16d-43cc-90c3-3331582a567a%2Fcy7zrn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Part A: Calculating Operating Cash Flows and Net Working Capital
1. Create an Income Statement.
Tally Corp has the following information for 2014:
Sales - $235,000
Cost - $141,000
Other Expenses - $7,900
Depreciation Expense - $17,300
Interest Expense $12,900
Taxes - $19,565
Dividends - $12,300
2014 New Equity - $6,100
Net New Long-term Debt - $(4,500)
Change in Fixed Assets - $25,000
2. Answer the following questions:
1.
What is the 2014 Operating Cash Flow?
2. What is the 2014 Cash Flow to Creditors?
3. What is the 2014 Cash Flow to Stockholders?
4.
If Net Fixed Assets increased by $25,000 during the year what is the addition to NWC?
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