Consider the following financial information and answer the questions that follow: Sales Costs Depreciation Operating expenses Interest expenses Taxes Dividends Addition to Retained Earnings : $250,000 : $134,000 : $10,200 : $6,000 : $20,700 : $18,420 : $10,600 : $50,080 : $9,300 : $8,470 : $15,000 Long term debt repaid New Equity issued New fixed assets acquired You are required to: i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iii) Calculate the cash flow to shareholder
Consider the following financial information and answer the questions that follow: Sales Costs Depreciation Operating expenses Interest expenses Taxes Dividends Addition to Retained Earnings : $250,000 : $134,000 : $10,200 : $6,000 : $20,700 : $18,420 : $10,600 : $50,080 : $9,300 : $8,470 : $15,000 Long term debt repaid New Equity issued New fixed assets acquired You are required to: i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iii) Calculate the cash flow to shareholder
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 26BE
Related questions
Question
Please assist and show working with explan

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
You are required to:
ii)
iii)
i) Calculate the operating cash flow
Calculate the cash flow to creditors
Calculate the cash flow to shareholder
Calculate the cash flow from assets
Calculate net capital spending
iv)
v)
vi) Calculate change in NWC
: $250,000
: $134,000
: $10,200
: $6,000
: $20,700
: $18,420
: $10,600
: $50,080
: $9,300
: $8,470
: $15,000
The following financial information is available for Hero Sports Ltd.:
Sales
Costs
Addition to retained earnings
Dividends paid
Interest expense
Tax rate
Compute the depreciation expense.
: $45,000
: $25,000
: $5,500
: $900
: $1,450
: 40%
Expert Solution
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Follow-up Questions
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Follow-up Question
Question iv, v, vi. Please assist and show working

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
You are required to:
ii)
iii)
i) Calculate the operating cash flow
Calculate the cash flow to creditors
Calculate the cash flow to shareholder
Calculate the cash flow from assets
Calculate net capital spending
iv)
v)
vi) Calculate change in NWC
: $250,000
: $134,000
: $10,200
: $6,000
: $20,700
: $18,420
: $10,600
: $50,080
: $9,300
: $8,470
: $15,000
The following financial information is available for Hero Sports Ltd.:
Sales
Costs
Addition to retained earnings
Dividends paid
Interest expense
Tax rate
Compute the depreciation expense.
: $45,000
: $25,000
: $5,500
: $900
: $1,450
: 40%
Solution
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