Given the following values: 2016 2017 S ales $3,813 $4,019 Long-term debt 1,555
ID: 2563638 • Letter: G
Question
Given the following values:
2016 2017
Sales $3,813 $4,019
Long-term debt 1,555 899
Interest paid 121 143
Owner’s equity 3,200 3,700
Accounts receivable 498 402
Depreciation 306 393
Cash 413 911
Inventory 1,516 1,533
Accounts payable 387 460
Cost of goods sold 2,123 2,609
Net fixed assets 2,715 2,213
Other costs 391 514
Taxes paid 305 126
Calculate cash flow from asset (means, the free cash flow of the company)
Calculate cash flow to creditors
Calculate cash flow to stockholders
Explanation / Answer
Cash flow to creditors for 2017 :Interest paid -[ENding debt -beginning debt]
= 143- [899-1555]
= 143 - [-656]
= 143+ 656
= $ 799
cash flow to stockholders :DIvidend -[Ending equity -beginning equity]
= 0- [3700-3200]
=0 - 500
= -500
cash flow from asset :
Change in net working capital:Ending -Beginning
= 2386-2040 = 346
net capital spending :Endinf fixed asset-beginning fixed asset+depreciation
= 2213-2715+393
= -109
operating cash flow for 2017 =sales-cost of goods sold-other cost-tax
=4019-2609-514-126
= 770
Cash flow from asset : OPerating cash flow -change in net working capital-net capital spending
= 770-346-(-109)
=770-346+109
= $ 533
Ending Beginning Current asset 402+911+1533=2846 498+413+1516=2427 current liability 460 387 working capital [current asset-current liability] 2386 2040Change in net working capital:Ending -Beginning
= 2386-2040 = 346
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