Titan Football Manufacturing had the following operating results for 2016: sales = $28,476; cost of goods sold
Question:
Titan Football Manufacturing had the following operating results for 2016: sales = $28,476; cost of goods sold = $20,136; depreciation expense = $3,408; interest expense = $497; dividends paid = $739. At the beginning of the year, net fixed assets were $19,872, current assets were $3,528, and current liabilities were $3,110. At the end of the year, net fixed assets were $22,608, current assets were $4,234, and current liabilities were $2,981. The tax rate for 2016 was 40 percent.
a. What is net income for 2016?
b. What is the operating cash flow for 2016?
c. What is the cash flow from assets for 2016? Is this possible? Explain.
d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders? Explain and interpret the positive and negative signs of your answers in parts (a) through (d).
Cash Flow From AssetsCash flow from assets is the aggregate total of all cash flows related to the assets of a business. This information is used to determine the net amount of cash being spun off by or used in the operations of a business. The concept is comprised of...
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Essentials of Corporate Finance
ISBN: 978-1259277214
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan