a. What is net income for 2009? b. What is the operating cash fl ow for 2009? c. What is the cash fl ow from assets for 2009? Is this possible? Explain
Calculating Cash Flows [LO2] Dahlia Industries had the following operating
results for 2009: sales $22,800; cost of goods sold $16,050;
expense $4,050; interest expense $1,830; dividends paid $1,300. At the
beginning of the year, net fi xed assets were $13,650, current assets were $4,800,
and current liabilities were $2,700. At the end of the year, net fi xed assets were
$16,800, current assets were $5,930, and current liabilities were $3,150. The tax
rate for 2009 was 34 percent.
a. What is net income for 2009?
b. What is the operating cash fl ow for 2009?
c. What is the cash fl ow from assets for 2009? Is this possible? Explain.
d. If no new debt was issued during the year, what is the cash fl ow to creditors?
What is the cash fl ow to stockholders? Explain and interpret the positive and
negative signs of your answers in ( a ) through ( d ).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
