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cash flow (

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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A company had sales of $600 and costs of $300. Depreciation was an additional $150, and interest paid was $30. Taxes were 40% of pretax income. Dividends were $30. Beginning net fixed assets were $500 and ending net fixed assets were $750. The company started the year with a net working capital of $510 and ended with $550. No shares of stock were issued that year. Calculate operating cash flow (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 222 Calculate net capital spending (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400 Calculate cash flow from assets (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400 Calculate cash flow to bondholders (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 0
Transcribed Image Text:A company had sales of $600 and costs of $300. Depreciation was an additional $150, and interest paid was $30. Taxes were 40% of pretax income. Dividends were $30. Beginning net fixed assets were $500 and ending net fixed assets were $750. The company started the year with a net working capital of $510 and ended with $550. No shares of stock were issued that year. Calculate operating cash flow (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 222 Calculate net capital spending (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400 Calculate cash flow from assets (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400 Calculate cash flow to bondholders (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 0
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Cash flow

Cash flow means inflow or outflow of money or money's worth during a particular period.

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