The 2017 balance sheet of Dream, Inc., showed current assets of $4,530 and current liabilities of...
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The 2017 balance sheet of Dream, Inc., showed current assets of $4,530 and current liabilities of $2,830. The 2018 balance sheet showed current assets of $3,200 and current liabilities of $1,650. What was the company's 2018 change in net working capital, or NWC? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Change in NWC Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $255,000; Costs = $156,000; Other expenses = $7,900; Depreciation expense = $15,600; Interest expense = $14,800; Taxes $21,245; Dividends = $12,000. In addition, you're told that the firm issued $6,300 in new equity during 2018 and redeemed $4,800 in outstanding long-term debt. = a. What is the 2018 operating cash flow? (Do not round intermediate calculations.) b. What is the 2018 cash flow to creditors? (Do not round intermediate calculations.) c. What is the 2018 cash flow to stockholders? (Do not round intermediate calculations.) d. If net fixed assets increased by $28,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) a. Operating cash flow b. Cash flow to creditors C. Cash flow to stockholders d. Addition to NWC The 2017 balance sheet of Dream, Inc., showed current assets of $4,530 and current liabilities of $2,830. The 2018 balance sheet showed current assets of $3,200 and current liabilities of $1,650. What was the company's 2018 change in net working capital, or NWC? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Change in NWC Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $255,000; Costs = $156,000; Other expenses = $7,900; Depreciation expense = $15,600; Interest expense = $14,800; Taxes $21,245; Dividends = $12,000. In addition, you're told that the firm issued $6,300 in new equity during 2018 and redeemed $4,800 in outstanding long-term debt. = a. What is the 2018 operating cash flow? (Do not round intermediate calculations.) b. What is the 2018 cash flow to creditors? (Do not round intermediate calculations.) c. What is the 2018 cash flow to stockholders? (Do not round intermediate calculations.) d. If net fixed assets increased by $28,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) a. Operating cash flow b. Cash flow to creditors C. Cash flow to stockholders d. Addition to NWC
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Solution To calculate the 2018 change in net working capital NWC for Dream Inc we need to find the d... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
Posted Date:
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