Sales : $250,000 Costs : $134,000 Depreciation : $10,200 Operating expenses : $6,000 Interest expenses : $20,700 Taxes : $18,420 Dividends : $10,600 Addition to Retained Earnings : $50,080 Long term debt repaid : $9,300 New Equity issued : $8,470 New fixed assets acquired : $15,000 You are required to: iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC
Sales : $250,000 Costs : $134,000 Depreciation : $10,200 Operating expenses : $6,000 Interest expenses : $20,700 Taxes : $18,420 Dividends : $10,600 Addition to Retained Earnings : $50,080 Long term debt repaid : $9,300 New Equity issued : $8,470 New fixed assets acquired : $15,000 You are required to: iv) Calculate the cash flow from assets v) Calculate net capital spending vi) 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
Problem 1PS
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Sales : $250,000
Costs : $134,000
Depreciation : $10,200
Operating expenses : $6,000
Interest expenses : $20,700
Taxes : $18,420
Dividends : $10,600
Addition to
Long term debt repaid : $9,300
New Equity issued : $8,470
New fixed assets acquired : $15,000
You are required to:
iv) Calculate the cash flow from assets
v) Calculate net capital spending
vi) Calculate change in NWC
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For Cash flow to creditors, why did you add it? Isn't CFC= Interest- Long Term Debt?
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