Consider the following financial information and answer the questions that follow: Sales Costs Depreciation Operating expenses Interest expenses Taxes Dividends Addition to Retained Earnings Long term debt repaid New Equity issued New fixed assets acquired You are required to: i) ii) iii) iv) v) vi) : $250,000 : $134,000 : $10, 200 : $6,000 : $20,700 : $18,420 : $10,600 : $50,080 : $9,300 : $8,470 : $15,000 Calculate the operating cash flow Calculate the cash flow to creditors Calculate the cash flow to shareholders Calculate the cash flow from assets Calculate net capital spending Calculate change in NWC
Consider the following financial information and answer the questions that follow: Sales Costs Depreciation Operating expenses Interest expenses Taxes Dividends Addition to Retained Earnings Long term debt repaid New Equity issued New fixed assets acquired You are required to: i) ii) iii) iv) v) vi) : $250,000 : $134,000 : $10, 200 : $6,000 : $20,700 : $18,420 : $10,600 : $50,080 : $9,300 : $8,470 : $15,000 Calculate the operating cash flow Calculate the cash flow to creditors Calculate the cash flow to shareholders Calculate the cash flow from assets Calculate net capital spending Calculate change in 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
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Consider the following financial information and answer the questions
that follow:
Sales
Costs
Depreciation
Operating expenses
Interest expenses
Taxes
Dividends
Addition to Retained Earnings
Long term debt repaid
New Equity issued
New fixed assets acquired
: $250,000
: $134,000
iv)
v)
vi)
: $10, 200
: $6,000
: $20,700
: $18,420
: $10,600
: $50,080
: $9,300
: $8,470
: $15,000
You are required to:
ii)
i) Calculate the operating cash flow
Calculate the cash flow to creditors
Calculate the cash flow to shareholders
Calculate the cash flow from assets
Calculate net capital spending
iii)
Calculate change in NWC
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