Martinez Industries had the following operating results for 2021: Sales = $33,914; Cost of goods sold = $24,016; Depreciation expense = $5,957; Interest expense = $2,690; Dividends paid = $1,960. At the beginning of the year, net fixed assets were $19,900, current assets were $7,026, and current liabilities were $3,968. At the end of the year, net fixed assets were $24,466, current assets were $8,660, and current liabilities were $4,637. The tax rate for 2021 was 23 percent. What is net income for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the operating cash flow for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What is the cash flow from assets for 2021? (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.) d-1. If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. If no new debt was issued during the year, what is the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate C.
Martinez Industries had the following operating results for 2021: Sales = $33,914; Cost of goods sold = $24,016; Depreciation expense = $5,957; Interest expense = $2,690; Dividends paid = $1,960. At the beginning of the year, net fixed assets were $19,900, current assets were $7,026, and current liabilities were $3,968. At the end of the year, net fixed assets were $24,466, current assets were $8,660, and current liabilities were $4,637. The tax rate for 2021 was 23 percent. What is net income for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the operating cash flow for 2021? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What is the cash flow from assets for 2021? (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.) d-1. If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. If no new debt was issued during the year, what is the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate C.
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
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Transcribed Image Text:## Martinez Industries Financial Analysis for 2021
Martinez Industries reported the following operating results for the year 2021:
- **Sales:** $33,914
- **Cost of Goods Sold (COGS):** $24,016
- **Depreciation Expense:** $5,957
- **Interest Expense:** $2,690
- **Dividends Paid:** $1,960
### Asset and Liability Overview
- **Beginning of Year:**
- Net Fixed Assets: $19,900
- Current Assets: $7,026
- Current Liabilities: $3,968
- **End of Year:**
- Net Fixed Assets: $24,466
- Current Assets: $8,660
- Current Liabilities: $4,637
### Tax Rate
- **Tax Rate for 2021:** 23%
### Instructions for Financial Calculations
1. **Net Income for 2021:**
- **Calculate and round to the nearest whole number.**
2. **Operating Cash Flow for 2021:**
- **Calculate and round to the nearest whole number.**
3. **Cash Flow from Assets for 2021:**
- **Calculate and indicate any negative results with a minus sign. Round to the nearest whole number.**
4. **Cash Flow to Creditors (if no new debt was issued during the year):**
- **Calculate and round to the nearest whole number.**
5. **Cash Flow to Stockholders (if no new debt was issued during the year):**
- **Calculate, indicating any negative amount with a minus sign. Round to the nearest whole number.**
### Results Table
| Description | Amount |
|---------------------------------|-----------|
| a. Net income | |
| b. Operating cash flow | |
| c. Cash flow from assets | |
| d-1. Cash flow to creditors | |
| d-2. Cash flow to stockholders | |
This overview provides the necessary data and questions to calculate Martinez Industries' key financial metrics and cash flows for 2021.
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