Assume the following: Operating cash flow 2017=$3M; Net Capital Spending 2017=$ 1 M; and from 2016...
Assume the following: Operating cash flow 2017=$3M; Net Capital Spending 2017=$ 1 M; and from 2016 to 2017 the firm increased its inventories by $1M and reduced it current liabilities by $0.5M. What is this firm’s Cash flow from assets for 2017? A) $3.5M B)$3.0 M c) $0.5M D)$4.0m
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Assume the following: Operating cash flow 2017=$3M; Net Capital
Spending 2017=$ 1 M; and from 2016...
Calculate operating cash flow, change in net working capital, net capital spending, cash flow to creditors...
Calculate operating cash flow, change in net working capital,
net capital spending, cash flow to creditors and cash flow to
stockholders. Does the cash flow identity hold?
Balance Sheet 2017 2018 Assets Current assets Cash $5,000 $6,500 Accounts receivable $31,500 30,000 $42,000 Inventory 40,000 Total $75,000 $80,000 Fixed assets Net plant and equipment $393,750 375,000 $450,000 Total assets $473,750 Liabilities and Owners Equity Current liabilities Accounts payable $50,000 $53,750 Notes payable 25,000 $26,250 Total $75,000 $80,000 Long-term debt Owners' equity...
OCF=operating cash flow NCS-net capital spending NWC= net working capital CFS=cash flow to shareholders CFC=cash flow...
OCF=operating cash flow
NCS-net capital spending
NWC= net working capital
CFS=cash flow to shareholders
CFC=cash flow to creditors
FCF=free cash flow
1. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement 2019 Revenues $20,000 Cost of Goods Sold $10.000 Other operating expenses $1,000 Depreciation expense $3.000 EBIT $6,000 Interest Expense $3,200 Taxable income $2.800 Taxes $840 Net income...
1. In 2017, Johnson Furniture had $5 in operating income (EBIT). The firm had a net...
1. In 2017, Johnson Furniture had $5 in operating income (EBIT). The firm had a net depreciation expense of $1 million and an interest expense of $1 million. Its corporate tax rate was 40%. The firm has $14 million in operating current assets and $4 million in operating current liabilities. It has $15 in net plant and equipment. It estimates that it has an after-tax cost of capital of 10%. Assume that Johnson Furniture’s only non-cash item was depreciation. A....
1A.) What is the change in the net working capital from 2016 to 2017? 1B.) What...
1A.) What is the change in the net working capital from 2016 to
2017?
1B.) What is the amount of the net capital spending for
2017?
1C.) What is the cash flow from assets for 2017?
1D.)What is the cash flow to creditors for 2017?
1E.) What is the cash flow to stockholders for 2017?
Consider the following financial statements for Galaga, Inc.: Galaga Inc. 2017 Income Statement Dividends Paid 91,600 Net Sales Less: Cost of Goods sold Less: Depreciation...
GOLDSMITH INC. Balance Sheet at December 31, 2017 2016 2017 $ 11,530 $ 13,680 Cash 11,100 Accounts Receivable 10,680 In...
GOLDSMITH INC. Balance Sheet at December 31, 2017 2016 2017 $ 11,530 $ 13,680 Cash 11,100 Accounts Receivable 10,680 Inventories 40,140 35,250 64,920 57,460 Total Current Assets Plant Assets, Net 115,890 105,000 $180,810 $162,460 Total Assets $ 9,530 $ 7,990 Accounts Payable 7,760 7,160 Accrued Liabilities Total Current Liabilities 17,290 15,150 Long-term Debt 33,170 41,630 Total Stockholder's Equity 121,890 114,140 $180,810 $162,460 Total Liabilities and Equity GOLDSMITH INC. Income Statement for the year ended December 31, 2017 2016 2017 $95,640...
What is the change in the net working capital from 2016 to 2017? What is the...
What is the change in the net working capital from 2016 to
2017?
What is the cash flow from assets for 2017?
What is the cash flow to stockholders for 2017?
Consider the following financial statements for Galaga, Inc.: Galaga Inc. 2017 Income Statement Dividends Paid 91,600 Net Sales Less: Cost of Goods sold Less: Depreciation Earnings before int, and taxes Less: Interest paid Taxable income Less: Taxes Net income 745,000 595,000 9,500 140,500 22,400 118,100 24,800 93,300 Galaga Inc....
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $161,000 on its statement of cash flows for the year ended December 31. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $3,100 Decrease in inventories 7,900 Depreciation 12,100 Gain on sale of investments 5,400 Increase in accounts payable 2,200 Increase...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $227,600 on its statement of cash flows for the year ended December 31. The following information was reported in the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $4,100 Decrease in inventories 10,300 Depreciation 15,900 Gain on sale of investments 7,200 Increase in accounts payable 2,900 Increase...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
Determining Net Income from Net Cash Flow from Operating
Activities
Curwen Inc. reported net cash flow from operating activities of
$196,600 on its statement of cash flows for the year ended December
31. The following information was reported in the Cash Flows from
Operating Activities section of the statement of cash flows, using
the indirect method:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
During 2017, Maria's Tennis Shop, Inc. had a cash flow to creditors of -$15,000 and the...
During 2017, Maria's Tennis Shop, Inc. had a cash flow to creditors of -$15,000 and the cash flow to stockholders for the year was $65,000. Suppose you also know that the firm's net capital spending for 2017 was $1,410,000 and that the firm reduced its net working capital investment by $77,000. what was the firm's 2017 operating cash flow, or OCF?
Calculate operating cash flow, change in net working capital,
net capital spending, cash flow to creditors and cash flow to
stockholders. Does the cash flow identity hold?
Balance Sheet 2017 2018 Assets Current assets Cash $5,000 $6,500 Accounts receivable $31,500 30,000 $42,000 Inventory 40,000 Total $75,000 $80,000 Fixed assets Net plant and equipment $393,750 375,000 $450,000 Total assets $473,750 Liabilities and Owners Equity Current liabilities Accounts payable $50,000 $53,750 Notes payable 25,000 $26,250 Total $75,000 $80,000 Long-term debt Owners' equity...
OCF=operating cash flow
NCS-net capital spending
NWC= net working capital
CFS=cash flow to shareholders
CFC=cash flow to creditors
FCF=free cash flow
1. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement 2019 Revenues $20,000 Cost of Goods Sold $10.000 Other operating expenses $1,000 Depreciation expense $3.000 EBIT $6,000 Interest Expense $3,200 Taxable income $2.800 Taxes $840 Net income...
1A.) What is the change in the net working capital from 2016 to
2017?
1B.) What is the amount of the net capital spending for
2017?
1C.) What is the cash flow from assets for 2017?
1D.)What is the cash flow to creditors for 2017?
1E.) What is the cash flow to stockholders for 2017?
Consider the following financial statements for Galaga, Inc.: Galaga Inc. 2017 Income Statement Dividends Paid 91,600 Net Sales Less: Cost of Goods sold Less: Depreciation...
GOLDSMITH INC. Balance Sheet at December 31, 2017 2016 2017 $ 11,530 $ 13,680 Cash 11,100 Accounts Receivable 10,680 Inventories 40,140 35,250 64,920 57,460 Total Current Assets Plant Assets, Net 115,890 105,000 $180,810 $162,460 Total Assets $ 9,530 $ 7,990 Accounts Payable 7,760 7,160 Accrued Liabilities Total Current Liabilities 17,290 15,150 Long-term Debt 33,170 41,630 Total Stockholder's Equity 121,890 114,140 $180,810 $162,460 Total Liabilities and Equity GOLDSMITH INC. Income Statement for the year ended December 31, 2017 2016 2017 $95,640...
What is the change in the net working capital from 2016 to
2017?
What is the cash flow from assets for 2017?
What is the cash flow to stockholders for 2017?
Consider the following financial statements for Galaga, Inc.: Galaga Inc. 2017 Income Statement Dividends Paid 91,600 Net Sales Less: Cost of Goods sold Less: Depreciation Earnings before int, and taxes Less: Interest paid Taxable income Less: Taxes Net income 745,000 595,000 9,500 140,500 22,400 118,100 24,800 93,300 Galaga Inc....
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $227,600 on its statement of cash flows for the year ended December 31. The following information was reported in the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $4,100 Decrease in inventories 10,300 Depreciation 15,900 Gain on sale of investments 7,200 Increase in accounts payable 2,900 Increase...
Determining Net Income from Net Cash Flow from Operating
Activities
Curwen Inc. reported net cash flow from operating activities of
$196,600 on its statement of cash flows for the year ended December
31. The following information was reported in the Cash Flows from
Operating Activities section of the statement of cash flows, using
the indirect method:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
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