Financial Accounting 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)?

Long-term debt (2014): $8.2 millionLong-term debt (2015): $8.5 millionInterest expense (2015):…

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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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?
The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,730,000, and the December 31, 2016, balance sheet showed long-term debt of $1,420,000. The 2016 income statement showed an interest expense of $97,000. What was the firm's cash flow to creditors during 2016? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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