Question

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. 2016 and 2017 Balance Sheets 2016 Cash Accounts Rec. Inventory Total Current Assets Net Fixed Assets Total 2016 9,100 24,200 104,600 137,900 126,100 264,000 2017 13,200 27,900 106,800 147,900 138,600 286,500 Accounts Payable Long-term debt Common Stock Retained Earnings 71,800 73,400 65,000 53,800 2017 92,500 68,500 70,000 55,500 Total 264,000 286,500

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?

Answer 1

Answers 1-) Charge in Networking Capital From 2016 to 2017 Nd working Capital - Current Asset - Current Irabitling 2016 =) 66100 2017 ) 137900 - 71800 = 147900 - 92500 = 55400 change in Groning Capital 2016 to 2017 is G6100- 55400 = 10700 Amount of net capital spend in 2017 Net capital spend = ending Value of netfred asset Bigining kalued Netfixed and + Deprecizition and anotisation = 138600 - 126100 + 9500 こ = lc 22000 T 22000 can now from Assed in 2017 cash how Cash Now from asset = Cashnow to creditor & to stockholders 273004 97600 = 124900, 1D Cashrows to creditors on 2017 intrest paid - Beg ending long komdebtt Bigining long terms debt 22 400 68500 + 73400 27300 TE Cash Now to stock holders 2017 Cash now to stock holders = Divident paid Newshare + Repurchase of equity 91600 5000+ 0 97 600