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 Тахes 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 $28,400 during the year, what was the addition to net working capital (NWC)?
Schwert Corp. shows the following information on its 2015 income statement: Particulars ($) Sales 215,000 Costs 117,000 Other expenses 6,700 Depreciation 18,400 expense Interest expense 10,000 Тахes 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 $28,400 during the year, what was the addition to net working capital (NWC)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Schwert Corp. shows the following information on its 2015 income statement:
Particulars
($)
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)?
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