Stackhouse Industries had the following operating results for 2020: sales = $54,510; cost of goods sold = $37,430; depreciation expense = $5,830; interest expense = $1,325; dividends paid = $2,820. At the beginning of the year, net fixed assets were $33,200, current assets were $8,300, and current liabilities were $5,553. At the end of the year, net fixed assets were $42,820, current assets were $9,395, and current liabilities were $5,870. The tax rate was 24 percent. a.What was net income for 2020? (Do not round intermediate calculations.)b.What was the operating cash flow for 2020? (Do not round intermediate calculations.)c.What was the cash flow from assets for 2020? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)d-1.If no new debt was issued during the year, what was the cash flow to creditors? (Do not round intermediate calculations.)d-2.If no new debt was issued during the year, what was the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

Answer a. Earnings before interest and tax(EBIT) = Sales - Cost of Goods Sold - Depreciation Expense…

Answered: Stackhouse Industries had the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Stackhouse Industries had the following operating results for 2020: sales = $54,510; cost of goods sold = $37,430; depreciation expense = $5,830; interest expense = $1,325; dividends paid = $2,820. At the beginning of the year, net fixed assets were $33,200, current assets were $8,300, and current liabilities were $5,553. At the end of the year, net fixed assets were $42,820, current assets were $9,395, and current liabilities were $5,870. The tax rate was 24 percent.

a.	What was net income for 2020? (Do not round intermediate calculations.)
b.	What was the operating cash flow for 2020? (Do not round intermediate calculations.)
c.	What was the cash flow from assets for 2020? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)
d-1.	If no new debt was issued during the year, what was the cash flow to creditors? (Do not round intermediate calculations.)
d-2.	If no new debt was issued during the year, what was the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

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