For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders
Question:
For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders for Ingersoll.
2017 2018 Sales $7,835 $ 8,409 Depreciation 1,125 1,126 Cost of goods sold 2,696 3,060 Other expenses 639 534 Interest 525 603 Cash 4,109 5,203 Accounts receivable 5,439 6,127 Short-term notes payable 794 746 Long-term debt 13,460 16,050 Net fixed assets 34,455 35,277 Accounts payable 4,316 4,185 Inventory 9,670 9,938 Dividends 956 1,051
Step by Step Answer:
OCF EBIT Depreciation Taxes OCF 3689 1126 104924 OCF 376576 Change in NWC NWC end NWC beg CA CL end ...View the full answer
Corporate Finance
ISBN: 9781259270116
8th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
Cash flow to stockholders is defined as: O A. cash flow from assets plus cash flow to creditors. O B. operating cash flow minus cash flow to creditors. O C. dividends paid plus the change in retained...
-
For 2015, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders for Ingersoll. 2014 2015 Sales Depreciation Cost of goods sold Other expenses Interest Cash...
-
For 2012, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. Use the following information for Ingersoll, Inc., for (assume the tax rate is 34percent): 2011...
-
Life Science Incorporated (LSI) is a firm with no debt and its 20 million shares are currently trading for $16 per share. Based on the prospects for one of LSI's new drugs, management feels the true...
-
Show that each point of the Cantor set F is a cluster point of C(F).
-
Study each of the following cases. Answer the questions that follow with Yes or No. Lackowitz, a college student, was concerned about a final examination. During previous examinations in the same...
-
Repeat Problem 8.117 if the friction factors are not known, but the pipes are steel pipes. Problem 8.117 With the valve closed, water flows from \(\operatorname{tank} A\) to \(\operatorname{tank} B\)...
-
Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This...
-
Using the pipework isometric drawing in Figure 6. list the number of welds of each type and size required; create a list of cut lengths for each pipe (neglect weld size and spacing); and . determine...
-
Worksheet data for Auburn Company are presented in E4.2. The owner did not make any additional investments in the business in April. Instructions Prepare an income statement, an owners equity...
-
Draw up a statement of comprehensive income and a statement of financial position for Ingersoll for 2017 and 2018. 2017 2018 Sales $7,835 $ 8,409 Depreciation 1,125 1,126 Cost of goods sold 2,696...
-
Imprudential Inc. has an unfunded pension liability of $750 million that must be paid in 20 years. To assess the value of the firms stock, financial analysts want to discount this liability back to...
-
Rationalize each denominator. Assume that all variables represent positive real numbers and that no denominators are 0. 12 6 +3
-
The plant manager is considering the installation of a second tank into an existing containment dike with a capacity of 175,000 gallons. (Note: 1 U.S. gallon = 0.1337 cubic feet). The existing tank...
-
The edges of a shoebox are measured to be 1 1 . 5 cm , 1 7 . 9 cm , and 3 1 cm . Determine the volume of the box, retaining the proper number of significant figures in your answer.
-
A researcher wants to compare the average weight gain of two different types of feed (Feed A and Feed B) for a group of growing pigs. They randomly assign 30 pigs to each feed group and measure their...
-
A city government passes a law setting the maximum price a landlord can charge for an apartment significantly above the market equilibrium. What impact will this have on the market for apartments?...
-
How does the Federal Open Market Committee increase the money supply? Why might the Federal Open Market Committee choose to increase the money supply?
-
Aldor Corporation opened a new store on January 1, 2014. During 2014, the fi rst year of operations, the following purchases and sales of inventory were made: Instructions (a) Calculate the cost of...
-
Eleni Cabinet Company sold 2,200 cabinets during 2011 at $160 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $56. Purchases made during the year were as follows: February . 225...
-
What goal should always motivate the actions of a firms financial manager?
-
What goal should always motivate the actions of a firms financial manager?
-
What goal should always motivate the actions of a firms financial manager?
-
Establishment Industries borrows $1,040 million at an interest rate of 7.2%. It expects to maintain this debt level into the far future. Establishment will pay tax at an effective rate of 38%. What...
-
The Presentation Layer ER Diagram shown in conjunction with part a below is focused around students who participate in sports and also enroll in classes. Please base your answer to this question on...
-
The current price of one share of XYZ stock is 56.50. A long straddle (one long call and one long put) on the stock with a strike price of K and one year to expiration has a total cost of 12.00. The...
Study smarter with the SolutionInn App