Calculating Cash Flows Weiland Co. shows the following information on its 2022 income statement: sales = $336,000; costs = $194,700; other expenses = $9,800; depreciation expense = $20,600; interest expense = $14,200; taxes = $21,275; dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2022 and redeemed $5,400 in outstanding long-term debt. Page 47 a. What is the 2022 operating cash flow? b. What is the 2022 cash flow to creditors? c. What is the 2022 cash flow to stockholders? d. If net fixed assets increased by $53.200 during the year, what was the addition to NWC?

Calculating Cash Flows Weiland Co. shows the following information on its 2022 income statement: sales = $336,000; costs = $194,700; other expenses = $9,800; depreciation expense = $20,600; interest expense = $14,200; taxes = $21,275; dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2022 and redeemed $5,400 in outstanding long-term debt. Page 47 a. What is the 2022 operating cash flow? b. What is the 2022 cash flow to creditors? c. What is the 2022 cash flow to stockholders? d. If net fixed assets increased by $53.200 during the year, what was 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

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Xanu Company's current value of operations is $4,079 million, with $679 million due to free cash flows occurring in Years 1 to 5, and 3,400 million due to free cash flows beyond Year 5 (the horizon date). What percent of value is due to expected long-term cash flows occurring beyond the horizon date?
Simbop Company reported 2020 net income of $151,000. During 2020, accounts receivable increased by $15,010 and accounts payable increased by $9,966. Depreciation expense was $39,300.Prepare the cash flows from operating activities section of the statement of cash flows.
In 2023, Active Lifestyle Inc. purchased $4, 364, 000 of new plant & equipment, resulting in $4, 364, 000 in cash flows from investing activities. During the year, it raised $5,000,000 by issuing bonds. The balance in the firm's cash account was $1,615, 000 at the beginning of 2023 and $1, 742,000 at the end of the year. How much cash was generated by Active Lifestyle Inc.'s operating activities in 2023? Set up a basic statement of cash flows for Active Lifestyle Inc. to illustrate and explain your calculation.
Given the following data from company def, using the direct method of cash flows the company would have determined its cash inflow to be: $30,000.00 Accounts receivable, at 12/31/2018 $20,000.00 Accounts receivable, at 12/31/2019 $507,000.00 Sales for year 2019 $357,000.00 Gross Profit A) 497,000 B) 367,000 C) 347,000 D) 517,000
As part of your analysis, you are required to investigate Insignia Corporation Limited’s cash flows. Required: Using the financial statement provided: Prepare Insignia’s Cash Flow Statement for 2020.
Calculating Total Cash Flows: Double Corp. shows the following information on its 2019 income statement: Sales = $415,000; Costs = $176,000; Other expenses = $9,900; Depreciation expense = $28,700; Interest expense = $12,900; Taxes = $23,345; Dividends = $29,500. In addition, you’re told that the firm issued $6,400 in new equity during 2019 and redeemed $4,900 in outstanding long-term debt. What is the 2019 operating cash flow? What is the 2019 cash flow to creditors? What is the 2019 cash flow to stockholders? If net fixed assets increased by $46,000 during the year, what was the addition to NWC?
Prepare a statement of cash flows using the information provided below and amounts indicated on the attached template. CD Corporation has the following for 2020: Net Income $145,000 Depreciation was $4,250 Sold Equipment with a Cost of $32,000, Accumulated Depreciation $15,000 for $22,500 Cash. Sold Common Stock of $250,000 Paid a Dividend of $6,500
Coronary, Inc. had the following transactions during 2020: Purchased new fixed assets for $35,000 Converted $20,000 worth of preferred shares to common shares Received cash dividends of $11,000. Paid cash dividends of $20,000. • Repaid mortgage principal of $17,000 . . . Assuming Coronary follows U.S. GAAP, which of the following amounts represents Coronary's cash flows from investing and cash flows from financing in 2020? Investing: ($35,000); Financing: ($37,000) Investing: ($24,000); Financing: ($26,000) Investing: ($35,000): Financing: ($26,000)
Prepare a statement of cash flows using the information provided below and amounts indicated on the attached template. CD Corporation has the following for 2020: Net Income $145,000 Depreciation was $4,250 Sold Equipment with a Cost of $32,000, Accumulated Depreciation $15,000 for $22,500 Cash. Sold Common Stock of $250,000 Paid a Dividend of $6,500 Balance Sheet Balances 2020 2019 Cash 882,500 425,000 Accounts Receivable 575,500 275,500 Merchandise Inventory 445,000 900,000 Prepaid Expenses 67,500 82,500 Equipment 68,000 100,000 Accumulated Depreciation – Building (29,250) (40,000) Accounts Payable 590,100 737,350 Wages Payable 65,000 40,000 Retained Earnings 254,150 115,650 Common Stock 1,100,000 850,000
Suppose Gulf Shipping Company had the following results related to cash flows for 2019: Net Income of $5,300,000 Adjustments from Operating Activities of -$500,000 Net Cash Flow from Investing Activities of -$700,000 Net Cash Flow from Financing Activities of $3,200,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow? Note: Financial results are provided in dollars but the income statement units are thousands of dollars. Please specify your answer in the same units as the statement of cash flows (i.e., enter the number from your completed statement of cash flows).
As a financial analyst, you have been tasked with evaluating Randy Watson Music's free cash flow. Based on the 2022 income statement, EBIT was $41 million, the tax rate was 21 percent, and its depreciation expense was $6 million. NOPAT gross fixed assets increased by $28 million from 2021 and 2022. The company's current assets increased by $18 million and current liabilities increased by $14 million. Calculate the operating cash flow (OCF) for 2022. (Enter your answer in millions of dollars.)
30.For 2020, the FNL Corporation reported $ 21,500 of Income on an Equity Method Investment. During the same year, FNL received $ 1,500 of dividends from this investment. Assuming that the company uses the indirect method to prepare the Statement of Cash Flows, what is the net effect of this investment when adjusting the Net Income to compute the Cash Provided by the Operating Activities? Select one: a It will increase by $ 1,500. b. It will decrease by $ 20,000. c. It will increase by $ 20,000. d. $ 0. It has no effect.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS