The financial statements for ACME Corp. are provided below. These can be copied and pasted into...
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The financial statements for ACME Corp. are provided below. These can be copied and pasted into your Excel workbook. Based on these statements: (i) Calculate ACME's operating cash flow for 2019. What does this number mean? (ii) Calculate ACME's net capital spending or CAPEX during 2019. What does this number mean? (iii) Calculate ACME's investment in net working capital during 2019. (iv) Calculate ACME's cash flow from assets for the year 2019. What does this number mean? (v) Calculate ACME's cash flow to creditors during 2019. Interpret this number. (vi) Calculate ACME's cash flow to shareholders during 2019, making sure to use a dividend figure in your calculations. Interpret this cash flow to shareholders number. Income Statement Year Ended 12/31/19 Sales Cost of Goods Sold Operating Expenses Depreciation EBIT Interest Expense EBT Taxes Net Income $1,200,000 750,000 200,000 100,000 150,000 50,000 100,000 40,000 $60,000 Current Assets Net Fixed Assets Total Assets Accounts Payable Notes Payable Balance Sheet Long-term Debt Common Stock Retained Earnings Total Liabilities & Equity 12/31/2018 $45,000 340,000 $385,000 $35,000 5,000 270,000 5,000 70,000 $385,000 12/31/2019 $50,000 430,000 $480,000 $15,000 20,000 330,000 5,000 110,000 $480,000 The financial statements for ACME Corp. are provided below. These can be copied and pasted into your Excel workbook. Based on these statements: (i) Calculate ACME's operating cash flow for 2019. What does this number mean? (ii) Calculate ACME's net capital spending or CAPEX during 2019. What does this number mean? (iii) Calculate ACME's investment in net working capital during 2019. (iv) Calculate ACME's cash flow from assets for the year 2019. What does this number mean? (v) Calculate ACME's cash flow to creditors during 2019. Interpret this number. (vi) Calculate ACME's cash flow to shareholders during 2019, making sure to use a dividend figure in your calculations. Interpret this cash flow to shareholders number. Income Statement Year Ended 12/31/19 Sales Cost of Goods Sold Operating Expenses Depreciation EBIT Interest Expense EBT Taxes Net Income $1,200,000 750,000 200,000 100,000 150,000 50,000 100,000 40,000 $60,000 Current Assets Net Fixed Assets Total Assets Accounts Payable Notes Payable Balance Sheet Long-term Debt Common Stock Retained Earnings Total Liabilities & Equity 12/31/2018 $45,000 340,000 $385,000 $35,000 5,000 270,000 5,000 70,000 $385,000 12/31/2019 $50,000 430,000 $480,000 $15,000 20,000 330,000 5,000 110,000 $480,000
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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