Question

1. Calculate the operating cash flow and net working capital. ? X - Sign In FILE * Calculating Total Cash Flows - Excel HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri - 11 - AA = % D o B IU. 3- A Alignment Number Conditional Format Cell Formatting as Table Style Font Styles BE- Paste Cells Editing Clipboard A1 D E F G н Jetson Spacecraft Corp. shows the following information on its 2011 income statement: sales = $235,000; costs = $141,000; other expenses = $7,900; depreciation expense = $17,300; interest expense = $12,900; taxes = $19,565, dividends = $12,300. In addition, you're told that the firm issued $6,100 in new equity during 2011 and redeemed $4,500 in outstanding long-term debt. a. What is the 2011 operating cash flow? b. What is the 2011 cash flow to creditors? c. What is the 2011 cash flow to stockholders? d. If net fixed assets increased by $25,000 during the year, what was the addition to NWC? $ Sales Costs Other expenses Depreciation expense Interest expense Taxes Dividends 235,000 141,000 7,900 17,300 12,900 19,565 12,300 2011 New equity Net new long-term debt Change in net fixed assets 6,100 (4,500) 25,000 Sheet1 ... + 0 0 -- READY Attempt(s) Hint

Answer 1

Please find below the formulas to calculate the answers, also the complete answer is attached as an image.

a.	Operating Cash Flow (EBIT + Depreciation - Taxes)
b.	Cash Flow to Creditors (Interest Paid - Net New Borrowings)
c.	Cash Flow to stockholders (Dividend - Net New Equity)
d.	Cash Flow from assets (Cash Flow to Creditors + Cash Flow to stockholders)
e.	Net capital spending (Change in Net Fixed Asset + Depreciation)
f.	Change in NWC (Operating Cash Flow - Cash flow from assets - Net Capital Spending)

INCOME STATEMENT + Sales - Costs - Other expense - Depreciation expense =EBIT - interest expense =EBT - Taxes Net Income Dividends Addition to retained earnings $ $ $ $ $ $ $ $ $ $ $ 2,35,000.00 1,41,000.00 7.900.00 17,300.00 68,800.00 12.900.00 55,900.00 19,565.00 36,335.00 12,300.00 24,035.00 1 New Equity in Year 2011 2 Net New Long-term Debt 3 Change in Net Fixed Assets $ $ $ 6,100.00 -4,500.00 25,000.00 $ 66,535.00 a. Operating Cash Flow (EBIT + Depreciation - Taxes) $ 17,400.00 b. Cash Flow to Creditors (Interest Paid - Net New Borrowings) $ 6,200.00 C. Cash Flow to stockholders (Dividend - Net New Equity) $ 23,600.00 d. Cash Flow from assets (Cash Flow to Creditors + Cash Flow to stockholders) $ 42,300.00 e. Net capital spending (Change in Net Fixed Asset + Depreciation) 635.00 f. Change in NWC (Operating Cash Flow - Cash flow from assets - Net Capital Spending)