I am searching for the accurate solution to this general accounting problem with the right approach. Calculate Cash Flow to Creditors.Change in net fixed assets: $18,000Change in net working capital: $12,000Dividends Paid: $25,000Depreciation Expense: $28,000Interest Paid: $15,000Net New Borrowing: $8,000Net New Equity Issued: $5,000

Step 1: Definition of Cash Flow to CreditorsCash flow to creditors refers to the net amount of cash…

Answered: Calculate Cash Flow to Creditors.…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 32BE

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Consider a cash flow and interest profile as shown: The worth at the end of Year 3 of these cash flows is: a. $5,000.00 b. $5,504.72 c. $5,994.56 d. $5,440.00
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Given the following Year 9 selected balance sheet data: Assets Cash on Hand $136,000 255,000 230,000 $485,000 Total Current Assets Total Fixed Asset Investments Total Assets Liabilities and Shareholder Equity Accounts Payable Overdraft Loan Payable 1-Year Bank Loan Payable Current Portion of Long-Term Loans Total Current Liabilities $ 66,000 10,000 17,000 93,000 46,000 139,000 Long-Term Bank Loans Total Liabilities Year 8 Year 9 Shareholder Equity: Balance Change Common Stock (at a par value of $0.50 per share Additional Capital Retained Earnings Total Shareholder Equity Total Liabilities and Shareholder Equity 10,050 81,500 162,450 254,000 10,050 81,500 254,450 346,000 $485,000 92,000 +92,000 Based on the above figures and the definition of the debt:equity percentages (or debt%:equity%) presented in the Help section for p. 5 of the Camera and Drone Journal, the company's debt:equity percentages (rounded to 2 decimal places) and its current ratio are: Copyright © by Glo-Bus Software,…
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Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $ (3,500,000.00) ($3,500,000.00) 1 $ 900,000.00 0.90909 $ 818,181.00 $818,181.82 2 $ 900,000.00 0.82645 $ 743,805.00 $743,801.65 3 $ 900,000.00 0.75131 $ 676,179.00 $676,183.32 4 $ 900,000.00 0.68301 $ 614,709.00 $614,712.11 5 $ 900,000.00 0.62092 $ 558,828.00 $558,829.19 Net Present Value $ (88,298.00) $ (88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. start with 5% increase for Year 1 net cash flow. Year Net Cash Flow 0 $…
Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $(3,500,000.00) ($3,500,000.00) 1 $900,000.00 0.90909 $818, 181.00 $818, 181.82 2 $ 900,000.00 0.82645 $743,805.00 $743, 801.65 3 $900,000.00 0.75131 $676, 179.00 $676, 183.32 4 $ 900,000.00 0.68301 $614,709.00 $614,712.11 5 $900,000.00 0.62092 $558, 828.00 $558,829.19 Net Present Value $(88,298.00) $(88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. Hint: You should start with 5% increase for Year 1 net cash flow.

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Calculate Cash Flow to Creditors. Change in net fixed assets: $18,000 Change in net working capital: $12,000 Dividends Paid: $25,000 Depreciation Expense: $28,000 Interest Paid: $15,000 Net New Borrowing: $8,000 Net New Equity Issued: $5,000