Question

G Force at the end of June 2013 had sales of $700,000, costs of $250,000, expenses of $100,000 and deprecation of $70,000, interest of $88,000 and taxes at 30%. Dividends paid was $10,500. No new long-term debt was issued, however, $4000 was issued in new equity.

Calculate:

1. Create the income statement
2. Operating cash flow
3. Cash flow to creditors
4. Cash flow to shareholders
5. Addition to net working capital

Answer 1

94 Income Statement Amount 7,00,000 2,59,000 1,00,000 TO,000 Sales o cost of goods sold other Expenses Depreciation EBIT Interest EBT Taxes NET Income 280,000 88,000 192,000 57600 134400 operating cash flow EB11 + Depreciation Taxes EBIT A) DE preliation 280000 70,000 330,000 6) Tates 57,600 Operating cash flow 292400 cash flow to creditors Inrerest wet new borrowing no new borrowing, so cash flow to creditons Interest: 88,000

Cash Flow to Shareholders Divident net new Equity Divident new Equity 10.500 (40,00) 6500 Cash flow Addition to net working Capital NWC Cash Flow From Assets = operating cash flow wet capital spending in Change in = cash flow from assets cash flow from creditors & cash flow from Shareholders 88000 + 6500 - 94500 wet capital spending 70,000 Cincrease in fixed Assets t Depoluation ) change in NWc = OCFD-ne capital Spending - Arabestrandarina 14 cash flow from Assets 292400 94500 - 7oooo Change in nac 127900