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2. Use the following balance sheet and income statement to calculat CF to creditors, CF to shareholders, and CFFA. Nitinan, Inc. 2019 Income Statement ($ in millions)

2. Use the following balance sheet and income statement to calculat CF to creditors, CF to shareholders, and CFFA. Nitinan, Inc. 2019 Income Statement ($ in millions)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Use the following balance sheet and income statement to calculate OCF, NCS, change in NWC, CF to creditors, CF to shareholders, and CFFA. Nittinan, Inc. 2019 Income Statement ($ in millions) $3,345,000 2,495,000 20,000 85,000 Net sales Less: Cost of goods sold Less: Depreciation expense Less: Other expenses Earnings before interest and taxes Less: Interest paid 745,000 100,000 $645,000 258,000 $387,000 Taxable Income Less: Taxes (40%) Net income $116,100 $270,900 Dividends Additions to Retained Earnings Nittinan, Inc. 2018 and 2019 Balance Sheets ($ in millions) 2018 2019 2018 2019 141500 175,000 115,000 95,000 385,000 171,000 Accounts payable 155,000 Notes payable 105,000 Total 431,000 Long-term debt 1,150,000 Common stock Cash 170000 Accounts rec. 10000 11500 Inventory Total 180000 153000 495000 447100 Net fixed assets 1,000,000 489700 489700 Retained earnings 220300 491200 Total assets 1,385,000 1,581,000 Total liab.& equity 1385000 1581000 OCF = NCS = Change in NWC = CF to creditors = CF to shareholders = CFFA=
Transcribed Image Text:2. Use the following balance sheet and income statement to calculate OCF, NCS, change in NWC, CF to creditors, CF to shareholders, and CFFA. Nittinan, Inc. 2019 Income Statement ($ in millions) $3,345,000 2,495,000 20,000 85,000 Net sales Less: Cost of goods sold Less: Depreciation expense Less: Other expenses Earnings before interest and taxes Less: Interest paid 745,000 100,000 $645,000 258,000 $387,000 Taxable Income Less: Taxes (40%) Net income $116,100 $270,900 Dividends Additions to Retained Earnings Nittinan, Inc. 2018 and 2019 Balance Sheets ($ in millions) 2018 2019 2018 2019 141500 175,000 115,000 95,000 385,000 171,000 Accounts payable 155,000 Notes payable 105,000 Total 431,000 Long-term debt 1,150,000 Common stock Cash 170000 Accounts rec. 10000 11500 Inventory Total 180000 153000 495000 447100 Net fixed assets 1,000,000 489700 489700 Retained earnings 220300 491200 Total assets 1,385,000 1,581,000 Total liab.& equity 1385000 1581000 OCF = NCS = Change in NWC = CF to creditors = CF to shareholders = CFFA=
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