Cusic Industries had the following operating results for 2018: sales = $19,900; cost of goods sold =
Question:
Cusic Industries had the following operating results for 2018: sales = $19,900; cost of goods sold = $14,200; depreciation expense = $2,700; interest expense = $670; dividends paid = $650. At the beginning of the year, net fixed assets were $15,340, current assets were $4,420, and current liabilities were $2,470. At the end of the year, net fixed assets were $16,770, current assets were $5,135, and current liabilities were $2,535. The tax rate for 2018 was 40 percent.
a. What is the net income for 2018?
b. What is the operating cash flow for 2018?
c. What is the cash flow from assets for 2018? Is this possible? Explain.
d. If no new debt was issued during the year, what are the cash flow to creditors and cash flow to shareholders? Explain and interpret the positive and negative signs of your answers in parts (a) through (d).
Step by Step Answer:
a The income statement is Income Statement Sales 19900 Cost of good sold 14200 Depreciation 2700 EBI...View the full answer
Corporate Finance
ISBN: 9781259270116
8th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
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