Hi expart Provide solution for this accounting question Weiland Co. shows the following information on its 2014 income statement:sales = $167,000; costs = $88,600; other expenses = $4,900; depreciationexpense = $11,600; interest expense = $8,700; taxes = $18,620; dividends =$9,700.In addition, you're told that the firm issued $2,900 in new equity during 2014,and redeemed $4,000 in outstanding long-term debt.a. Calculating Cash Flows. What is the 2014 operating cash flow?b. What is the 2014 cash flow to creditors?c. What is the 2014 cash flow to stockholders?d. If net fixed assets increased by $23,140 during the year, what was theaddition to NWC?

Step 1: Define Operating Cash FlowThe operating cash flow refers the amount of cash generated by the…

Answered: Weiland Co. shows the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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Weiland Co. shows the following information on its 2014 income statement: sales $167,000; costs = $88,600; other expenses $4,900; depreciation expense = $11,600; interest expense = $8,700; taxes $18,620; dividends $9,700. In addition, you're told that the firm issued $2,900 in new equity during 2014, and redeemed $4,000 in outstanding long-term debt. (Enter your answer as directed, but do not round intermediate calculations.) Required: a) What is the operating cash flow during 2014? Operating cash flow b) What is the cash flow to creditors during 2014? Cash flow to creditors c) What is the cash flow to stockholders during 2014? Cash flow to stockholders d) Assuming net fixed assets increased by $23,140 during the year, what was the addition to NWC? Addition to net working capital не
Schwert Corp. shows the following information on its 2015 income statement: Particulars ($) 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)?
Bedrock Gravel Corp. shows the following information on its 2007 income statement: sales $162,000; costs = $93,000; other expenses = $5,100: depreciation expense = $8,400; interest expense = $16,500; taxes = $14,820; dividends $9,400. In addition, you're told that the firm issued $7,350 in new equity during 2007 and redeemed $6,400 in outstanding long-term debt. a. What is the 2007 operating cash flow? b. What is the 2007 cash flow to creditors? c. What is the 2007 cash flow to stockholders? d. If net fixed assets increased by $12,000 during the year, what was the addition to NWC?
Home Depot entered fiscal 2017 with a total capitalization of $21,904 million. In 2017, debt investors received interest income of $877 million. Net income to shareholders was $8,654 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
In 2016, the Allen Corporation had sales of $61 million, total assets of $43 million, and total liabilities of $15 million. The interest rate on the company's debt is 5.8 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent. a. Compute the firm's 2016 net operating income and net income. b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)
In 2016, the Allen corporation had sales of $67 million, total assets of $42 million, and total liabilities of $19 million. The interest rate on the company’s debt is 6.3 percent, and it’s tax rate is 35 percent. The operating profit margin is 14 percent A. Compute the firm’s 2016 net operating income and net income The firm’s 2016 net operating income is Round to two decimal places B. Calculate the firms operating return on assets and return on equity.
In 2016, the Allen corporation had sales of $63 million, total assets of $44 million, and total liabilities of $15 million. The interest rate on the company’s debt is 5.7 percent, and it’s tax rate is 35 percent. The operating profit margin is 14 percent. A. Compute the firm’s 2016 net operating income and net income The firm’s 2016 net operating income is Round to two decimal places.
In 2016, the Allen Corporation had sales of $60 million, total assets of $47 million, and total liabilities of $22 million. The interest rate on the company's debt is 5.6%, and its tax rate is 35%. The operating profit margin is 12%. Compute the firm's 2016 net operating income and net income. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)
James Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.5 million. Also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.75 for every $1.00 increase in sales. James' profit margin is 3%, and its retention ratio is 35%. How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent.
Target industries reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 8%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2017?
In 2016, the Allen Corporation had sales of $62 million, total assets of $47 million, and total liabilities of $19 million. The interest rate on the company's debt is 5.9 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent. a) Compute the firm's 2016 net operating income and net income. b) Calculate the firm's operating return on assets and return on equity.
Paladin Furnishings generated $4 million in sales during 2016, and its year-end total assets were $3.2 million. Also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.80 for every $1.00 increase in sales. Paladin's profit margin is 5%, and its retention ratio is 40%. How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. $

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