Graffiti Advertising, Inc., reported the following financial statements for the last two years. a. Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b.Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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
icon
Related questions
Topic Video
Question

Graffiti Advertising, Inc., reported the following financial statements for the last two years.

a. Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

b.Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

c. Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

d. Calculate the cash flow from assets. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

 

e. Calculate the cash flow to creditors. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

f. Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

 

2016 Income Statement
Sales
Costs of goods sold
Selling and administrative
Depreciation
EBIT
Interest
EBT
Тахes
$ 573,700
273,940
124,716
54,559
S 120,485
19,670
$ 100,815
40,326
$ 60,489
$ 11,300
S 49,189
Net income
Dividends
Addition to retained eamings
Cash
Accounts receivable
Inventory
Current assets
GRAFFITI ADVERTISING, INC.
Balance Sheet as of December 31, 2015
$ 13,490
18,977
13,811
$ 46,278
$ 9,487
14,491
$ 23,978
Accounts payable
Notes payable
Current liabilities
$ 344,936
$ 391,214
Long-term debt
Owner's equity
Total liabilities and owners' equity
$ 135,440
$231,796
$ 391,214
Net fixed assets
Total assets
Cash
Accounts receivable
Inventory
Current assets
GRAFFITI ADVERTISING, INC.
Balance Sheet as of December 31, 2016
$ 14,476
21,082
22,771
$ 58,329
$ 10,529
16,483
$ 27,012
Accounts payable
Notes payable
Current liabilities
$ 406,294
$ 464,623
Long-term debt
Owner's equity
Total liabilities and owners' equity
$ 153,700
$ 283,911
$ 464,623
Net fixed assets
Total assets
Transcribed Image Text:2016 Income Statement Sales Costs of goods sold Selling and administrative Depreciation EBIT Interest EBT Тахes $ 573,700 273,940 124,716 54,559 S 120,485 19,670 $ 100,815 40,326 $ 60,489 $ 11,300 S 49,189 Net income Dividends Addition to retained eamings Cash Accounts receivable Inventory Current assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 $ 13,490 18,977 13,811 $ 46,278 $ 9,487 14,491 $ 23,978 Accounts payable Notes payable Current liabilities $ 344,936 $ 391,214 Long-term debt Owner's equity Total liabilities and owners' equity $ 135,440 $231,796 $ 391,214 Net fixed assets Total assets Cash Accounts receivable Inventory Current assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 $ 14,476 21,082 22,771 $ 58,329 $ 10,529 16,483 $ 27,012 Accounts payable Notes payable Current liabilities $ 406,294 $ 464,623 Long-term debt Owner's equity Total liabilities and owners' equity $ 153,700 $ 283,911 $ 464,623 Net fixed assets Total assets
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps with 6 images

Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
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…
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