Question

please follow the information I have, all areas in red are incorrect, I need the formulas and answers to determine what I am doing wrong.

i f 637=25 с DE Cash Flow Identity Exercise Complete the CFI using the given income statements and other information below 2019 2018 Assets Current Assets Cash & Equivalents Short term investments Accounts receivable Inventories Other current assets Total current assets Comparative Balance Sheets 2019 2018 Liabilities Current Liabilities 2,500 2550 Accounts payable 1.834 2.400 Accruals and Other 5,672 4966 Total current liabilities 2.700 2.675 Bonds Payable 1001 9 41 Other long term abilities 13.707 13 532 Total Long Term Liabilities Total liabilities 14 500 12.890 Owners Equity 3.400 3.350 Common Stock & APIC 7 900 16.200 Retained Eamings Total owner's equity 31,607 29.732 Total Liabilities and Equity 7.680 7,770 2.425 3,762 10 105 11,532 3,800 3.650 1656 1606 5.4565246 15,561 16,788 Net Plant. properly and equipm Other Long term assets Total Long-term Assets 3.10 4.013 12.0668.931 16.046 1294 31.607 29,732 Total Assets Income Statement: 2019 Cast of Cads S 3.597 1602 19561 Cash Flow From Assets: 49.850 Operating Cash Flow 10.512Net Capital Spending 31.308 Change in Nel Working Capital Cash Flow from Assets: 1 897 16.987 Cash Flow to Creditors: Interest Expense 12,091 Net New Borrowing Cash Flow to Creditors: Depreciation Selling & Admin Expenses her 333 Intend Operating income Other misce taneous Losses 300 Cash Flow to Owners: Dividends refer to your chic DET (33) Net new owner contributions Cash Flow to Owners: interest Expense refer to your came Taxable income Total Cash Flow to Investors FALSE Income Tax Expense on Net Income student name main Accessibilnvestigate Start a search

those are the numbers that were put in the sheet,I didn't calculate that. I keep getting the same EBIT that you are and it says it's wrong.

interest is not correct, everything in red is wrong

Answer 1

In order to calculate EBIT, subtract losses and add other income.

EBIT=$( 12091+380-220 )= $12251

Now calculate interest @4.2% on average total long term liability of $5356 =$225

Taxable income will come out to be $12026

Reduce the tax of $3007 and net income will be $9019.

Solve using these values and you will get dividend paid as $5884 in the statement of retained earnings.

Put these values and solve the remaining ones.