In 2017, Lysander Shipping had cash flow from assets of $1.65 million, paid $450,000 in interest...

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Question

In 2017, Lysander Shipping had cash flow from assets of $1.65 million, paid $450,000 in interest...

In 2017, Lysander Shipping had cash flow from assets of $1.65 million, paid $450,000 in interest expense and $375,000 in dividends. The company also repurchased outstanding stock for $1.45 million. The company:

	A.	issued debt of $625,000.
	B.	paid down debt of $200,000.
	C.	paid down debt of $825,000.

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Answer 1

Answer #1

Cash flow from assets = $1,650,000

Less: Interest expense = ($450,000)

Less: Dividends = ($375,000)

Less: Repurchased o/s stock = ($1,450,000)

Cash shortage = ($625,000)

So, company might issued new debt of $625,000

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Answer 2

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