4. Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022. 5. Calculate the Dividends per Share and Earnings per Share for each year for Brown Company. 6. Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and equity.
4. Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022. 5. Calculate the Dividends per Share and Earnings per Share for each year for Brown Company. 6. Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and equity.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 94PSA
Related questions
Question
4. Calculate the cash flow from assets, cash flow to creditors,
and cash flow to stockholders for 2022.
5. Calculate the Dividends per Share and Earnings per Share for
each year for Brown Company.
6. Briefly comment on the company’s cash flows for 2022 in light
of an expansion plan which will be financed by both debt and
equity.
![Life-Positive's Account 2021 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Cost of goods sold
2022 ($)
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
The tax rate is 32%
Shares outstanding 85,000.00 90,000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8766db28-c43b-4b7d-a00b-8195edb010ff%2Fec21eb4d-a86f-447b-b51e-333b3d197c84%2Fryr1ejr_processed.png&w=3840&q=75)
Transcribed Image Text:Life-Positive's Account 2021 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Cost of goods sold
2022 ($)
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
The tax rate is 32%
Shares outstanding 85,000.00 90,000.00
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