Question

Cusic Industries had the following operating results for 2015: sales $29,500; cost of goods sold $19,760; depreciation expense = $5,260; interest expense = $2,640, dividends paid-$1,450. At the beginning of the year, net fixed assets were $17,080, current assets were $5,860, and current liabilities were $3,325. At the end of the year, net fixed assets were $20,660, current assets were $7,300, and current liabilities were $3,980. The tax rate for 2015 was 35 percent. a. What was net income for 2015? (Do not round intermediate calculations.) Net income 1195 b. What was the operating cash flow for 2015? (Do not round intermediate calculations.) Operating cash flow 9096 c. What was the cash flow from assets for 2015? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Cash flow from assets 529 d-1 If no new debt was issued during the year, what was the cash flow to creditors? (Do not round intermediate calculations.) 2640 2 If no new debt was issued during the year, what was the cash flow to stockholders? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Cash flow to stockholders

Answer 1

Cash flow from assets = Cash flow to stockholders + Cash flow to creditors

-529 = Cash flow to stockholders + 2640

Cash flow to stockholders = -2640 - 529 = -3169