Question

please help me with question 4 and 5

Full Name Sradent ID/Passport No. 6. Sheffield Co. $153.00 Test on Chapter Two (32%) 1 Arredondo, Inc., has current assets of $2,170, net fixed assets of $9,300, current $1.350, and long-term debt of $3.980. What is the value of the shareholders' equity for this firm? (296) How much is net working capital7 (%) of the shareholders' equity acco inc. has sales of $585,000 costs of $273,000, depreciation expense of 571.000 T expense of $38.000, and a tax rate of 35 percent. What is the net income for this firm? 2. Lifeline, Inc., has sales of 3. Hammett Inc. has sales of $19,570 costs of 59.4 expense of $1,620. If the tax rate is 35 percent what is the opera . has sales of $19.570 costs of $9.460 depreciation expense of $2,130 and interest the tax rate is 35 percent what is the operating cash flow or OCF? (4%) 4. The December 31, 2009 balance sheet of Schism Inc.. showed long-term debt of $1,373,000 and the December 31, 2010 balance sheet showed long-term debt of $1,530,000. The 2010 income statement showed an interest expense of $91,500. What was the firm's cash flow to creditors during 2010? (4%) 5. The December 31, 2009 balance sheet of Schism Inc., showed $135,000 in the common stock account and $2,600,000 in the additional paid-in surplus account. The December 31, 2010 balance sheet showed $145,000 and $2,900,000 in the same two accounts respectively. The company paid out $140,000 in cash dividends during 2010. What was the cash flow to stockholders for the year? (4%)

Answer 1

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Answer is highlighted in yellow: Solution: $ 91,500 Answer: 4 Explanation: Only interest is paid to creditors in this case. Because, debt amount has increased during 2010. Other facts of transactions are not given, which indicate only interest is paid as $91500. $140,000 Answer: 5) Explanation: Cash flow to shareholders means cash paid to shareholders. In this case, only dividend is paid to shareholders.