Schwert Corp. shows the following information on its 2015 statement of comprehensive income: sales = $167,000; costs
Question:
Schwert Corp. shows the following information on its 2015 statement of comprehensive income: sales = $167,000; costs = $91,000; other expenses = $5,400; depreciation expense = $8,000; interest expense = $11,000; taxes = $18,060; dividends = $9,500. In addition, you’re told that the firm issued $7,250 in new equity during 2015 and redeemed $7,100 in outstanding long-term debt.
a. What is the 2015 operating cash flow?
b. What is the 2015 cash flow to creditors?
c. What is the 2015 cash flow to shareholders?
d. If net fixed assets increased by $22,400 during the year, what was the addition to net working capital?
Step by Step Answer:
To find the operating cash flow we first calculate net income Income Statement Sales 167000 Costs 91...View the full answer
Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
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