Question

See Table 2.5

showing financial statement data and stock price data for Mydeco Corp.

a. From 2015 to 2019, what was the total cash flow that Mydeco generated from operations?

b. What fraction of the total in (a) was spent on capital expenditures?

c. What fraction of the total in (a) was spent paying dividends to shareholders?

d. What was Mydeco's total retained earnings for this period?

table 2.5

$20210605_135833.jpg$

other half of table 2.5

$20210605_135844.jpg$

Answer 1

A) cash from operations 2015- 2019

56.6+ 54.6+ 52.5+ 44.2+ 55.6= 263.5 total cash flow

B) total capital expenditure: 23.5+ 26.7+ 98.2+ 76.0+ 39.7= 264.1

264.1/ 263.5= 1.0022770398   rounded to       Answer: 100.2 %

C) total dividend paid: 5.6+ 5.6+ 5.6+ 5.6+ 6.8= 29.2

29.2/ 263.5= 0.1108159393 rounded to        Answer: 11.08%

D) Retained earnings= net income- dividends

total net income= 25.9+ 9.2+ 13.3+ 15.1+ 23.9= 87.4

87.4- 29.2= 58.2 Answer