Question

Calculating total cash flows - Excel FORMULAS DATA REVIEW VIEW Sign In FILE HOME INSERT PAGE LAYOUT Arial Cells Editing Paste BIU 12 % 3.A - Alignment Number Conditional Format as Cell Formatting Table Styles Font Styles Clipboard X D32 D E G F H с А B Jetson Spacecraft Corp, shows the following information on its 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 the year and redeemed $4,500 in outstanding long-term debt. a. What is the operating cash flow? b. What is the cash flow to creditors? c. What is the cash flow to stockholders? d. If net fixed assets increased by $25,000 during the year, what was the addition to NWC? 4 S 6 $ 7 B 9 Sales Costs Other expenses Depreciation expense Interest expense Taxes Dividends 235.000 141,000 7,900 17.300 12.900 19,565 12,300 10 11 12 13 14 $ 15 New equity Net new long-term debt Change in fixed assets 6,100 (4,500) 25,000 16 1 < Prev 6 of 8 Next > MacBook Air 80 000 F2 000 F4 " < F3 F5 F6 F7 78 19 # $ % A & * 2 1

all answers must be in entered as a formula. thanks.

Answer 1

1. Question -

A B с D E F G H 1 2 3 4 5 6 7 8 9 10 Sales Costs Other Expense Depreciation Expense Interest Expense Taxes Dividends $ $ $ $ $ $ $ 235,000 141,000 7,900 17,300 12,900 19,565 12,300 11 12 13 14 15 New Equity New Long Term Debt Change in Fixed Assets $ $ $ 6,100 (4,500) 25,000 16 17 18

2. Income Statement -

A B с D E F G I 19 20 21 22 23 24 25 Sales Costs Gross Profit Other Expense Depreciation Expense EBIT Interest Expense EBT Taxes Net Income $ 235,000 $ 141,000 $ 94,000 $ 7,900 $ 17,300 $ 68,800 $ 12,900 $ 55,900 $ 19,565 $ 36,335 26 27 28 29 30 31 32 Dividends $ Addition to Retained Earnings $ 12,300 24,035 33 34

3. Solutions -

a. Operating Cash Flow EBIT + Depreciation - Taxes =D26+D25-D29 $ 66,535 b. Cash Flow to Creditors Interest paid - Net new borrowing =D10-(015) $ 17,400 c. Cash flow to Stockholders Dividends paid - Net new equity =D32-D14 $ 6,200 d. Cash flow from assets Cash flow to creditors + Cash flow to stockholders =D42+D47 $ 23,600 Net Capital Spending Depreciation + Increase in fixed assets =D9+D16 $ 42,300 Cash flow from assets $ $ Change in NWC = OCF-Change in NWC-Net capital spending 23,600 =D37- Change in NWC-057 23,600 =$66,535 - Change in NWC - $42,300 =$66,535 -$23,600 - $42,300 Change in NWC $635