or the year ending 2022, determine the Net New Equity, Change  in Net Working Capital, Net Capital Spending and Operating Cash  flow.  Calculate the cash flow from assets, cash flow to creditors,  and cash flow to stockholders for 2022.   Calculate the Dividends per Share and Earnings per Share for  each year for Brown Company. Briefly comment on the company’s cash flows for 2022 in light  of an expansion plan which will be financed by both debt and  equity.

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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For the year ending 2022, determine the Net New Equity, Change 
in Net Working Capital, Net Capital Spending and Operating Cash 
flow. 

Calculate the cash flow from assets, cash flow to creditors, 
and cash flow to stockholders for 2022.
 

Calculate the Dividends per Share and Earnings per Share for 
each year for Brown Company.

Briefly comment on the company’s cash flows for 2022 in light 
of an expansion plan which will be financed by both debt and 
equity.

You work as a freelance accounting professional and have be
recently engaged by the auditors of Life-Positive Inc. for
assignment. In examining the company's records, you have extract
the following information:
Life-Positive's Account 2021 ($) 2022 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable 15,700.00 12,340.00
Cash 23,450.00 28,600.00
Cost of goods sold 19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00
10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00 8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
Shares outstanding 85,000.00 90,000.00
The tax rate is 32%
Transcribed Image Text:You work as a freelance accounting professional and have be recently engaged by the auditors of Life-Positive Inc. for assignment. In examining the company's records, you have extract the following information: Life-Positive's Account 2021 ($) 2022 ($) Balances Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32%
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