Question

Weiland Co. shows the following information on its 2014 income statement: sales = $161,000; costs = $80,300; other expenses = $3,600; depreciation expense = $9,300; interest expense = $6,800; taxes = $21,350; dividends = $8,000. In addition, you're told that the firm issued $4,200 in new equity during 2014, and redeemed $7,100 in outstanding long-term debt. (Enter your answer as directed, but do not round intermediate calculations.)

Required:
(a)	What is the operating cash flow during 2014?

Operating cash flow

$

(b)	What is the cash flow to creditors during 2014?

Cash flow to creditors

$

(c)	What is the cash flow to stockholders during 2014?

Cash flow to stockholders

$

(d)	Assuming net fixed assets increased by $21,050 during the year, what was the addition to NWC?

Addition to net working capital

$

Answer 1

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NPV, IRR, PBP,OCF,INDEX Microsoft Excel (Pro File Home Insert Page Layout Formulas Data Review View Add-Ins Cut Ea Copy - AutoSum General A A Wrap Text Calibri 11 Fill A- Merge & Center Conditional Format Insert Delete Format Paste BIU S % Cell Sort & Find & 2 Clear Format Painter er Select Formatting ble Styles Clipboard Font Alignment Number Shules Cells Editing O1242 OB OD OF Ol NX NY NZ OA OF OG OH OJ OK 229 WEILAND INCOME STATEMENT 230 SALES 161000 231 LESS COGS 80300 232 LESS OTHER COSTS 3600 DEPRECIATION 233 LESS 9300 234 EBIT 67800 235 LESS INTEREST 6800 236 EBT 61000 = 237 LESS TAX 21350 238 NET INCOME 39650 - 239 DIVIDENDS 240 8000 241 242 55750 243 OPERATING CASH FLOW 244 EBIT DEPRECIATION TAXES 245 246 b CASH FLOW TO CREDITORS 13900 247 INTEREST NET NEW BORROWING OCF CASH FLOw STATW FCF HEDGING MONEY MARKET GM HPR AM ARM, MSI,confidencelINDEX CURRENCYLOAN CROSS OVER TAX GROWTH SUSTPREF AND DIV POLICY 130% Re erences: EV49 W 05:51 ENG 5-06-2019

NPV, IRR, PBP,OCF,INDEX Microsoft Excel (Pro File Home Insert Page Layout Formulas Data Review View Add-Ins - Cut AutoSum General A A Wrap Text Calibri 11 Fill Copy A- Merge & Center Conditional Format Insert Delete Format Paste BIU S % Cell Sort & Find & 2 Clear Format Painter er Select Formatting ble Styles Clipboard Font Alignment Number Shules Cells Editing O1258 NZ OC OD OF Ol NX NY OA OB OF OG OH OJ OK 245 13900 246 b CASH FLOW TO CREDITORS INTEREST-NET NEW BORROWING 247 248 (6800-(-7100) 249 3800 250 CASH FLOW TO STOK HOLDERS C DIVIDEND NET NEW EQUITY 251 (8000- 4200) 252 253 254 CASH FLOW FROM ASSETS= (CASH FLOW TO CREDITORS+CASHFLOW TO STOCK HOLDERS 17700 255 CASH FLOW FROM ASSETS = 256 30350 [21050+9300 257 NET CAPITAL SPENDING 258 (INCREASE IN NET FIXED ASSETS +DEPRECIATION) 259 260 ADDITION TO NWC 7700 CASH FLOW FROM ASSETS OCF NET CAPITAL SPENDING CHANGE IN NWC 17700 55750 - 30350 - CHANGE IN NWC 261 262 55750-30350-17700 263 CHANGE IN NWC = ARM, MSI,confidenceINDEX CURRENCY OCF CASH FLOW STATW FCF CROSS OVER HEDGING MONEY MARKET GM HPR AM LOAN TAXGROWTH SUST PREF AND DIV POLICY 130% Re erences: EV49 W 05:52 ENG 5-06-2019