What was the firm's 2015 operating cash flow on these general accounting question? The 2014 balance sheet of TechVibe Electronics, Inc., showed long-term debt of $8.2 million, and the 2015 balance sheet showed long-term debt of $8.5 million. The 2015 income statement showed aninterest expense of $220,000. During 2015, the company had a cashflow to creditors of -$30,000, and the cash flow to stockholders forthe year was $80,000. Suppose you also know that the firm's netcapital spending for 2015 was $2,000,000 and that the firm reducedits net working capital investment by $100,000. What was the firm's2015 operating cash flow (OCF)?

To calculate the firm's 2015 Operating Cash Flow (OCF), we will use the Cash Flow Identity: Cash…

Answered: The 2014 balance sheet of TechVibe…

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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General Accounting
Financial Accounting
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…
Consider the following balance sheet for Go The Distance Trading Cards. Sales were $1,200,000 in the past year. Go The Distance Trading Cards Balance Sheet, 2013: Assets $ Current Assets $74,630.00 Net fixed Assets (Net PPE) $224,900.00 Total Assets $299,530.00 Liabilities and Shareholder Equity Current Liabilities $43,510.00 Long-term liabilities (Long term debt) $93,200.00 Total Liabilities $136,710.00 Shareholder equity $162,820.00 Total Liabilities and Shareholder Equity $299,530.00 What is the debt-to-asset ratio for this firm?
At year-end 2015, Wallace Landscaping’s total assets were $1.9 million and its accounts payable were $425,000. Sales, which in 2015 were $2.3 million, are expected to increase by 30% in 2016. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $430,000 in 2015, and retained earnings were $340,000. Wallace has arranged to sell $65,000 of new common stock in 2016 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2016. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 7%, and 40% of earnings will be paid out as dividends. How much new long-term debt financing will be needed in 2016? (Hint: AFN - New stock = New long-term debt.) Do not round…
Volbeat Corp. shows the following information on its 2015 income statement: sales = $255,000; costs = $156,000; other expenses = $7,900; depreciation expense = $15,600; interest expense = $14,800; taxes = $21,245; dividends = $12,000. In addition, you're told that the firm issued $6,300 in new equity during 2015 and redeemed $4,800 in outstanding long-term debt. a. What is the 2015 operating cash flow? b. What is the 2015 cash flow to creditors? c. What is the 2015 cash flow to stockholders?
The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $870,000 in the common stock account and $6 million in the additional paid-in surplus account. The 2009 balance sheet showed $905,000 and $7.8 million in the same two accounts, respectively. The company paid out $620,000 in cash dividends during 2009. What was the cash flow to stockholders for the year?
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What were Lory's net new stock issues in that year on these financial accounting question?
Schwert Corp. shows the following information on its 2015 income statement: Particulars ($) Sales 215,000 Costs 117,000 Other expenses 6,700 Depreciation 18,400 expense Interest expense 10,000 Таxes 25,370 Dividends 9,500 In addition, you are told that the firm issued $8,100 in new equity during 2015 and redeemed $7,200 in outstanding long-term debt. Please answer the following: • What is the 2015 operating cash flow? • What is the 2015 cash flow to creditors? • What is the 2015 cash flow to stockholders? • If net fixed assets increased by $28,400 during the year, what was the addition to net working capital (NWC)?
Schwert Corp. shows the following information on its 2015 income statement: Sales = $215,000; COGS= $117,000; o Other operating expenses excluding Depreciation = $6,700; Depreciation expense=$18,400; Interest Expense=$10,000; Taxes = $25,370; Dividends =$9,500. Change in the cash balance from 2014 to 2015 is +$2,000. In addition, you're told that the firm issued $8,100 in new equity during 2015 and redeemed $7,200 in outstanding long-term debt. a. What is the 2015 cash flow to creditors? What is the 2015 cash flow to stockholders? b. What is the 2015 cash flows from financing? c. If net fixed assets increased by $28,400 during the year, what was the change in WCR? Did WCR increase or decrease? d. How much cash did Schwert generate from its operations? WCR = Working capital requirement

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