The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of$1,470,000, $154,000 in the common stock account, and $2,790,000 in the additionalpaid-in surplus account. The December 31, 2019, balance sheet showed long-term debtof $1,720,000, $164,000 in the common stock account and $3,090,000 in the additionalpaid-in surplus account. The 2019 income statement showed an interest expense of$101,000 and the company paid out $159,000 in cash dividends during 2019. The firm'snet capital spending for 2019 was $1,100,000, and the firm reduced its net workingcapital investment by $139,000.What was the firm's 2019 operating cash flow, or OCF? (A negative answer should beindicated by a minus sign. Do not round intermediate calculations and enter youranswer in dollars, not millions of dollars, rounded to the nearest whole number, e.g.,1,234,567.)Operating cash flow

Working Note: 1. Cash Flow to Creditors = Interest Expense – (Closing Long term Debt – Opening Long…

Answered: The December 31, 2018, balance sheet of…

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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According to the balance sheet of Free Inc, at the end of the 2020 fiscal year, the cash balance is $200,000, account available balance is $500,000, inventory balance is $750,000; the net fixed asset is $1,500,000. On the other side, the account payable is $250,000, the accrual $40,000, the notes payable is $300,000, long-term debt is $510,000, common stock is $1,200,000, retained earnings is $650,000. The net income is $900,000; the interest payment is $45,600; the tax rate is 25%. If the sales is $10,000,000, what is the operating margin?b. 13.26%c. 11.45%d. 10.66%
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,435,000, $147,000 in the common stock account, and $2,720,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,650,000, $157,000 in the common stock account and $3,020,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $97,500 and the company paid out $152,000 in cash dividends during 2019. The firm's net capital spending for 2019 was $1,030,000, and the firm reduced its net working capital investment by $132,000. What was the firm's 2019 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Operating cash flow
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Kingbird Inc., had the following condensed balance sheet at the end of operations for 2019. KINGBIRD INC.BALANCE SHEETDECEMBER 31, 2019 Cash $8,400 Current liabilities $15,100 Current assets other than cash 29,300 Long-term notes payable 25,700 Equity invesments 19,800 Bonds payable 25,000 Plant assets (net) 67,700 Common stock 75,000 Land 40,400 Retained earnings 24,800 $165,600 $165,600 During 2020, the following occurred. 1. A tract of land was purchased for $9,100. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,500 were paid to stockholders. 5. Net income was $30,400 after allowing depreciation of $13,600. 6. Land was purchased through the issuance of $22,600 in bonds. 7. Kingbird Inc. sold part of its investment portfolio for $12,700. This transaction resulted in a…
Below are the 2018 and 2019 year-end balance sheets for Walker Inc.:. Assets Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total common equity Total liabilities and equity 2019 $200,000 864,000 2,000,000 $3,064,000 6,000,000 $9,064,000 $2,400,000 1,600,000 $3,000,000 2,400,000 2,000,000 664,000 $2,664,000 $9,064,000 2018 $170,000 700,000 1,400,000 $2,270,000 5,600,000 $7,870,000 $1,090,000 800,000 $1,890,000 2,400,000 3,000,000 580,000 $3,580,000 $7,870,000 Walker has never paid a dividend on its common share, and it issued $2,400,000 of 10-year non- callable, long-term debt in 2018. As of the end of 2019, none of the principal on this debt had been repaid. Assume that the company's sales in 2018 and 2019 were the same. Which of the following statements must be correct? O a. Walker issued new common shares in 2019. O b.…
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,385,000, $137,000 in the common stock account, and $2,620,000 in the additional paid-in surplus account. The December 31, 2019. balance sheet showed long-term debt of $1,550,000, $147,000 in the common stock account and $2.920.000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $92,500 and the company paid out $142,000 in cash dividends during 2019. The firm's net capital spending for 2019 was $930,000, and the firm reduced its net working capital investment by $122,000. What was the firm's 2019 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Operating cash flow
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Applying the Fundamental Accounting Equation At the beginning of 2019, KJ Corporation had total assets of $554,000, total liabilities of $261,800, common stock of $139,300, and retained earnings of $152,900. During 2019, KJ had net income of $225,200, paid dividends of $74,400, and issued additional common stock for $93,900. KJ's total assets at the end of 2019 were $721,800. Required: Calculate the amount of liabilities that KJ must have at the end of 2019 in order for the balance sheet equation to balance.

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