Graffiti Advertising, Inc.,reported the following financial statements for the last twoyears. (Enter your answer as directed, but
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Graffiti Advertising, Inc.,reported the following financial statements for the last twoyears. (Enter your answer as directed, but do notround intermediate calculations.) |
2014 Income Statement | ||
Sales | $ | 573,700 |
Costs of goodssold | 273,940 | |
Selling &administrative | 124,716 | |
Depreciation | 54,559 | |
EBIT | $ | 120,485 |
Interest | 19,670 | |
EBT | $ | 100,815 |
Taxes | 40,326 | |
Net income | $ | 60,489 |
Dividends | $ | 11,300 |
Addition to retainedearnings | $ | 49,189 |
GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2013 | |||||
Cash | $ | 13,490 | Accountspayable | $ | 9,487 |
Accountsreceivable | 18,977 | Notespayable | 14,491 | ||
Inventory | 13,811 | ||||
Currentliabilities | $ | 23,978 | |||
Current assets | $ | 46,278 | Long-termdebt | $ | 135,440 |
Net fixedassets | $ | 344,936 | Owner'sequity | $ | 231,796 |
Total assets | $ | 391,214 | Total liabilitiesand owners’ equity | $ | 391,214 |
GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2014 | |||||
Cash | $ | 14,476 | Accountspayable | $ | 10,529 |
Accountsreceivable | 21,082 | Notes payable | 16,483 | ||
Inventory | 22,771 | ||||
Currentliabilities | $ | 27,012 | |||
Current assets | $ | 58,329 | Long-term debt | $ | 153,700 |
Net fixedassets | $ | 406,294 | Owner's equity | $ | 283,911 |
Total assets | $ | 464,623 | Total liabilities andowners’ equity | $ | 464,623 |
Requirement1: |
Calculate the operating cash flow. |
Operating cashflow | $ |
Requirement2: |
Calculate the change in net working capital. |
Change in networking capital | $ |
Requirement3: |
Calculate the net capital spending. |
Net capitalspending | $ |
Requirement4: |
Calculate the cash flow fromassets. (Do not include the dollarsign ($). Negative amount should be indicatedby a minus sign.) |
Cash flow fromassets | $ |
Requirement5: |
Calculate the cash flow to creditors. |
Cash flow tocreditors | $ |
Requirement6: |
Calculate the cash flow tostockholders. (Negative amount shouldbe indicated by a minus sign.) |
Cash flow tostockholders | $ |
Related Book For
Essentials of Corporate Finance
ISBN: 978-1259277214
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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