Ritter Corporations accountants prepared the following financial statements for year-end. RITTER CORPORATION Income Statement 2020 Revenue...............$1,282 Expenses..................945

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Ritter Corporation’s accountants prepared the following financial statements for year-end.

RITTER CORPORATION
   Income Statement
             2020

Revenue...............$1,282
Expenses..................945
Depreciation..............92
EBT.........................$ 245
Tax..............................54
Net income...........$ 191
Dividends................$ 58
RITTER CORPORATION Balance Sheets December 31 2019 2020 Assets Cash $ 97 $ 112 Other current assets 304 318 Net fixed assets 828 988 Total assets $1,229 $1,418 Liabilities and Equity Accounts payable $ 354 $ 362 Long-term debt 48 Stockholders' equity 875 1,008 Total liabilities and equity $1,229 $1,418

a. Explain the change in cash during the year 2020.
b. Determine the change in net working capital in 2020.
c. Determine the cash flow generated by the firm’s assets during the year 2020.

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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