Ritter Corporations accountants prepared the following financial statements for yearend 2018: RITTER CORPORATION Statement of Comprehensive Income

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Ritter Corporation’s accountants prepared the following financial statements for yearend 2018:

            RITTER CORPORATION
Statement of Comprehensive Income
                          2018

Revenue .............$750
Expenses............ 565
Depreciation .........90
Net income ........$ 95
Dividends ..........$ 75

RITTER CORPORATION Statement of Financial Position December 31 2018 2017 Assets Cash $ 65 $ 55 Other current assets 170 165 Net fixed assets 390 370 Total assets $625 $590 Liabilities and equity Accounts payable $125 $115 Long-term debt 145 140 Shareholders' equity 355 335 Total liabilities and equity $625


a. Explain the change in cash during 2018.
b. Determine the change in net working capital in 2018.
c. Determine the cash flow generated by the firm’s assets during 2018.

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Corporate Finance

ISBN: 9781259270116

8th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss

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