Freeman, Inc., reported the following financial statements for the last two years. Construct the cash flow identity for the company. Explain what each number means.
Answer to relevant QuestionsThe Stancil Corporation provided the following current information: Proceeds from long-term borrowing ............ $12,000 Proceeds from the sale of common stock .......... 3,000 Purchases of fixed assets ...Huang, Inc., is obligated to pay its creditors $12,500 very soon. a. What is the market value of the shareholders’ equity if assets have a market value of $15,100? b. What if assets equal $10,200? For 2010, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. The 2009 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.4 million, and the 2010 balance sheet showed long-term debt of $2.5 million. The 2010 income statement showed an interest expense of $195,000. ...Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity is $900,000. What is the equity multiplier? Return on equity? Net income?
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