Willison Aircraft Corp shows the following information on its 2020 income statement. Sales Costs $196,000 $104,000 $6,800 Other Expenses Depreciation Expenses $9,100 Interest Expenses Taxes Dividends $14,800 $21,455 $10,400 In addition, you are told that that the firm has issued $5,700 in new equity during 2020 and redeemed $7,300 in outstanding long-term debt. What is the 2020 operating cash flow of the company?

Willison Aircraft Corp shows the following information on its 2020 income statement. Sales Costs $196,000 $104,000 $6,800 Other Expenses Depreciation Expenses $9,100 Interest Expenses Taxes Dividends $14,800 $21,455 $10,400 In addition, you are told that that the firm has issued $5,700 in new equity during 2020 and redeemed $7,300 in outstanding long-term debt. What is the 2020 operating cash flow of the company?

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 8P: LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and...

See similar textbooks

Similar questions

LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. 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 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)
Finance Schwert Corp. shows the following information on its 2019 income statement: sales = $246,000; costs = $135,000; other expenses = $7,100; depreciation expense = $19,100; interest expense = $10,000; taxes = $18,876; dividends = $9,800. In addition, you’re told that the firm issued $7,900 in new equity during 2019 and redeemed $6,800 in outstanding long-term debt. Net capital spending is X. There is no change in net working capital. What is X?
Swifty Incorporated had average total assets in 2025 of $6343000. It reported sales for of $8209000 that year. Average liabilities for the year were $5187000. Net income for the year was $964136. What is Swifty' return on assets for 2025? O 15.20% 18.59% O 11.74% 6.60%
Landvision Inc. had net income in 2020 for $120,000. Here are some of the extra financial ratios from the annual report Profit margin 20%, Return on Assets 35%, Debt to Asset Ratio30% Please calculate the ROE ratio O A. 70% B. 60% O C. 50% O D. 25%
The 2022 balance sheet of Fast Auto Manufacturers, showed $1.4 million in long-term debt, $470,000 in the common stock account, and $4.15 million in the additional paid-in surplus account. The 2023 balance sheet showed $3.15 million, $755,000, and $6.2 million in the same three accounts, respectively. The 2023 income statement showed an interest expense of $280,000. The company paid out $500,000 in cash dividends during 2023. If the firm's net capital spending for 2023 was $330,000, and the firm reduced its net working capital investment by $265,000, what was the firm's 2023 operating cash flow, or OCF? O $-3,240,000 O $-4,130,000 O $4,530,000 $-3,400,000 O $5,155,000
A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million Net income = 2 million Total Equity = 15 million Total Assets = 30 million Calculate the company’s net profit margin, asset turnover, equity multiplier and ROE
Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2019 Sales Cost $ 9,000 7,100 Net income $ 1,900 BALANCE SHEET, YEAR-END 2018 Assets $ 6,500 2019 $ 9,500 Total $ 6,500 $ 9,500 Debt Equity Total 2018 $ 853 2019 $1,000 5,647 $6,500 $9,500 8,500 a. If sales increase by 25% In 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the Income and balance sheet also increase by 25%), what must be the balancing item? b. What will be the value of this balancing item? Answer is not complete. a. Balancing item Dividends b. Value
Nightwish Corporation shows the following information on its 2021 income statement: Sales $336,000; Costs = $20,600; Interest expense = $14,200; Taxes = $21,275; Dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2021 and redeemed $5,400 in outstanding long-term debt. $194,700; Other expenses = $9,800; Depreciation expense = %3D a. What is the 2021 operating cash flow? (Do not round intermediate calculations.) b. What is the 2021 cash flow to creditors? (Do not round intermediate calculations.) c. What is the 2021 cash flow to stockholders? (Do not round intermediate calculations.) d. If net fixed assets increased by $53,200 during the year, what was the addition to NWC? (Do not round intermediate calculations.) a. Operating cash flow b. Cash flow to creditors c. Cash flow to stockholders d. Addition to NWC
Sheridan Corporation had the following 2020 income statement. Revenues $95,000Expenses 63,000 $32,000 In 2020, Sheridan had the following activity in selected accounts. Accounts Receivable1/1/20 20,000Revenues 95,00012/31/20 22,100 Write-offs 900Collections 92,000 Allowance for Doubtful AccountsWrite-offs 900 1/1/20 1,200Bad debt expense 1,90012/31/20 2,200 (a) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the direct method. Sheridan CorporationStatement of Cash Flows-Direct Method (Partial) $ $ (b) Prepare Sheridan’s cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Sheridan CorporationStatement of…
A company has the following items for the fiscal year 2020: Revenue =10 million EBIT = 5 million Net income = 2 million Total Equity = 20 million Total Assets = 40 million Calculate the company’s ROA and ROE
Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATΕΜENT, 2019 $6,000 4,700 Sales Cost Net income $1,300 BALANCE SHEET, YEAR-END 2018 2019 2018 2019 $9,500 $14,300 $ 8,567 933 $1,000 13,300 Assets Debt Equity Total $9,500 $14,300 Total $9,500 $14,300 a. If sales increase by 10% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 10%), what must be the balancing item? b. What will be the value of this balancing item? Balancing item а. b. Value
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 12% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income $ 4,400 3,700 $ 700 Net assets 2021 $ 3,564 Balance Sheet, Year-End 2020 $ 3,100 Total $ 3,564 $ 3,100 Debt Equity Total 2021 $ 1,364 2,200 2020 $ 1,233 1,867 $ 3,564 $ 3,100 a. If the payout ratio is set at 60% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 60% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Maximum possible growth rate % b. Maximum possible growth rate %