The following income statement and balance sheets should be used for Questions 1 through 5 Delco Accents,
Question:
The following income statement and balance sheets should be used for Questions 1 through 5
Delco Accents, Inc. 2022 Income Statement ($ in millions)
Net sales $12,456
Less: Cost of goods sold 6,762
Less: Depreciation 1,903
Earnings before interest and taxes 3,791
Less: Interest paid 825
Earnings before taxes 2,966
Less: Taxes 1,038
Net income $1,928
Addition to retained earnings $ 1,213
Dividends paid 715
Delco Accents, Inc. 12/31/21 and 12/31/22 Balance Sheet ($ in millions)
2021 2022 2021 2022
Cash $1,596 $1,883 Accounts payable $1,261 $1,488
Accounts rec. 2,698 3,184 Notes payable 2,852 3,365
Inventory 1,541 1,818 Total $4,113 $4,853
Total $5,835 $6,885 Long-term debt 7,372 7,624
Net fixed assets 21,872 23,096 Common stock 5,731 5,800
Retained earnings 10,491 11,704
Total assets $27,707 $29,981 Total liabilities $27,707 $29,981
What is the firm's operating cash flow for 2022?
Expert Answer:
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
