Question

Nanticoke Industries had the following operating results for 2018: sales $29,220; cost of goods sold = $19,560; depreciation expense = $5,100; interest expense = $2,490; dividends paid = $1,250. At the beginning of the year, net fixed assets were $16,880, current assets were $5,820, and current liabilities were $3,360. At the end of the year, net fixed assets were $20,460, current assets were $7,360, and current liabilities were $3,940. The tax rate for 2018 was 30 %.

a. What is net income for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.) Net income b. What is the operating cash flow for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.) Operating cash flow $ c. What is the cash flow from assets for 2018? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.) Cash flow from assets d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to shareholders? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.) Cash flow to creditors Cash flow to shareholders $

Answer 1

manticoke Enduytries a. Net Encome for the year 2018. Particulare Amoun) Sales $29,200 less Cost of goods sold ($ 19,560 Gross profil $9640 tem! Depreciation Esepenges (5,100) Operating income 4540 2490 less: Interest expenses (1950) dividends Net in come 800 Net income caftes tou) = 560 6. Operating Cash flows for 2018 Particulare Ancool (8) Net income 808 560 Add non-Cash Expenditure 5100 Depreciation less: Increase in Cusleut Assels (7360 - 5820) Add an crear in Goeuk liabilities (3940 - 3360) Cash flow from operating a ctivities - 4700 (1540) 580

C Cash flow from anvesting Activity for 2018 particulare Amount încrease in fixed Assets means Purchases 30460 -16880) (3580) Cash flow from Assets → (3580) d. Cash flow to creditors's Cost of goods sold = 19,560 1540 Add: 2ncrease in anveutory less: Znerease in Account Payable Cash paid to Ereditors 20,590 (580) * Note - Increase in Cussent assets due to increase in inventory - Increase in Cussent liabilities is only financrease in Account Payable.

Cash flow to share holders Share holders equily - Total Assets - Cursent habilities .. Beginning of sliace holde's equity = ($ 16880+ 5820)-( 3360) = 19,340 closing of share holdeis equity 23,880 (20,460+ 7360) – 3940 increase in shace holde's equity = 4540 ( 93 880-19340 is treated as inflow by way of new issue, Please do like... Happy Chegging.