Chapter 2 1. Square Hammer Corp. Shows the following information on iis 2018 income statement : Sales =$305,000; Costs=$176,000; Other expenses =$8,900; Depreciation expense =$18,700; Interest expense=$12,900; Taxes =$23,345; Dividends =$19,500. In addition, you're told that the firm issued $6,400 in new equity during 2018 and redeemed $4,900 in outstanding long-term debt. a. What is the 2018 operating cash flow? b. What is the 2018 cash flow to creditors? C. What is the 2018 cash flow to stockholders? d. If net fixed assets increased by $46,000 during the year, what was the addition to NWC? 2. Given the following information for Bowie Pizza, calculate the depreciation expense; Sales=$64,000; Costs$30,700; Addition to retained earnings=$5,700; Dividends paid=$1,980; Interest expense=$4,400; Tax rate=22 percent 3. Cardinal Industries had the following operating results for 2018; Sales=$33,106; Cost of goods sold=$23,624; Depreciation expense=$5,977; Interest expense=$2,650; Dividends paid=$1,888. At the beginning of the year, next fixed assets were $19,820, current assets were $6,970, and current liabilities were $3,920. At the end of the year, next fixed assets were $24,394, current assets were $8,612, and current liabilities were $4,575. The tax rate for 2018 was 22 percent. a. What is net income for 2018? b. What is the operating cash flow for 2018? c. What is the cash flow form assets for 2018? d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? 4. Consider the following abbreviated financial statements for Parrothead Enterprises; Assets 2017 $1,206 4,973 Current Assets Net Fixed assets 2018 $1,307 5,988