Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9780077861759
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 2, Problem 14QP

Calculating total Cash Flows Schwert Corp. shows the following information on its 2015 income statement: sales = $215,000; costs = $117,000; other expenses = $6,700; depreciation expense= $18,400; interest expense = $10,000; taxes= $25,370; dividends = $9,500. In addition, you’re told that the firm issued $8,100 in new equity during 2015 and redeemed $7,200 in outstanding long-term debt.

  1. a. What is the 2015 opcratu1g cash flow?
  2. b. What is the 2015 cash now to creditors?
  3. c. What is the 2015 cash now to stockholders?
  4. d. If net fixed assets increased by $28,400 during the year, what was the addition to net working capital (NWC)?
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Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)

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