Provide answer general accounting The 2014 balance sheet of Sugarpova's Tennis Shop, Inc.,showed long-term debt of $5.5 million, and the 2015balance sheet showed long-term debt of $5.7 million. The2015 income statement showed an interest expenseof $180,000. During 2015, the company had a cash flow tocreditors of -$20,000, and the cash flow to stockholdersfor the year was $60,000. Suppose you also know that thefirm's net capital spending for 2015 was $1,400,000 andthat the firm reduced its net working capital investmentby $75,000. What was the firm's 2015 operating cash flow,or OCF?

Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) represents the cash…

Answered: The 2014 balance sheet of Sugarpova's…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 9P

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The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $5.1 million, and the 2018 balance sheet showed long-term debt of $5.0 million. The 2018 income statement showed an interest expense of $165,000. During 2018, the company had a cash flow to stockholders for the year was $70,000. Suppose you also know that the firm’s net capital spending for 2018 was $1,370,000, and that the firm reduced its net working capital investment by $69,000. What was the firm’s 2018 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long- term debt of $3.3 million, and the 2015 balance sheet showed long-term debt of $3.4 million. The 2015 income statement showed an interest expense of $155,000. During 2015, the company had a cash flow to creditors of $55,000 and the cash flow to stockholders for the year was $60,000. Suppose you also know that the firm s net capital spending for 2015 was $1,350,000 and that the firm reduced its net working capital investment by $65,000. What was the firm's 2015 operating cash flow, or OCF?
At year-end 2016, total assets for Arrington Inc. were $1.4 million and accounts payable were $410,000. Sales, which in 2016 were $2.8 million, are expected to increase by 20% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $440,000 in 2016, and retained earnings were $305,000. Arrington plans to sell new common stock in the amount of $60,000. The firm's profit margin on sales is 3%; 50% of earnings will be retained. a. What were Arrington's total liabilities in 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent. b. How much new long-term debt financing will be needed in 2017? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round your…
The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet: $ 50 Accounts payable Notes payable Cash $ 100 150 Accounts receivable 200 200 Accruals 50 Inventories 400 Net fixed assets 500 Long-term debt Common stock 100 Retained earnings 250 Total assets $1,000 Total liabilities and equity $1,000 Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 50 and its payout ratio to be 60%. What is Booth's additional funds needed (AFN) for the coming year?
The 2017 balance sheet of Kerber’s Tennis Shop, Incorporated, showed $2.4 million in long-term debt, $720,000 in the common stock account, and $6.05 million in the additional paid-in surplus account. The 2018 balance sheet showed $4.1 million, $895,000, and $8.3 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $190,000. The company paid out $600,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $860,000, and the firm reduced its net working capital investment by $115,000, what was the firm's 2018 operating cash flow, or OCF?
The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $2.45 million in long-term debt, $730,000 in the common stock account, and $6.15 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.6 million, $975,000, and $8.45 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $330,000. The company paid out $540,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $790,000, and the firm reduced its net working capital investment by $125,000, what was the firm's 2018 operating cash flow, or OCF? Multiple Choice O O $3,075,000 $-4,570,000 $-2,160,000 $-2,825,000 $-3,240,000
The 2017 balance sheet of Kerber's Tennis Shop , Incorporated, showed $2.4 million long-term debt, $760,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.95 million $985,000, and $8.05 million in the same three accounts , respectively . The 2018 income statement showed an interest expense of $ 310,000 . The company paid out $590,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $690,000 , and the firm reduced its net working capital Investment by $185,000 , what was the firm's 2018 operating cash flow , or OCF ? Typed solution
You are a financial Manager of Chevron Corp. You need to assess the effectiveness of working capital management of the company for 2018 using the following data. What is the 2018 Receivable turnover? 2017 Account Receivable = 15,353 000 2018 Account Receivable = 15.050,00O 2017 Inventory = 5,585.000 2018 Inventory = 5 704.00O 2017 Accounts Payable= 14 565 00I 2018 Accounts Payable = 13 953 000 2017 Sales 134,674 000 2018 Sales 158.902 000. 2017 Cost of Sales = 95 114.000 2018 Cost of Sales = 113 997 000 2017 Purchases= 95 114 000 2018 PurchaSes = 123 435 000
Jetson Spacecraft Corp. shows the following information on its 2015 income statement: sales = $319,767; costs = $178,650; other expenses = $5,786; depreciation expense = $18,444; interest expense = $14,233; taxes = $17,008; dividends = $10,711. In addition, you’re told that the firm issued $5,368 in new equity during 2015 and redeemed $5,570 in outstanding long-term debt. If net fixed assets increased by $21,756 during the year, what was the addition to NWC?
The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.5 million, and the 2015 balance sheet showed long-term debt of $5.9 million. The 2015 income statement showed an interest expense of $135,000. What was the firm's cash flow to creditors during 2015?
Square Hammer Corporation shows the following information on its 2018 income statement: Sales = $196,000; Costs = $84,000; Other expenses = $5,100; Depreciation expense = $9,000; Interest expense = $13,300; Taxes = $29,610; Dividends = $10,300. In addition, you're told that the firm issued $7,100 in new equity during 2018 and redeemed $8,700 in outstanding long-term debt. a. What is the 2018 operating cash flow? Operating cash flow b. What is the 2018 cash flow to creditors? Cash flow to creditors
Maggie's Muffins, Inc., generated $2,000,000 in sales during 2016, and its year-end total assets were $1,600,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2017, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 3%, and its payout ratio will be 60%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole. Give typing answer with explanation and conclusion

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