1. Calculating Total Cash Flows Schwert Corp.shows the following information on

Question

1. Calculating Total Cash Flows Schwert Corp.shows the following information on its 2010 income statement: sales= $167,000; costs = $91,000; other expenses =$5,400; depreciationexpense = $8,000; interest expense =$11,000; taxes = $18,060;dividends = $9,500. In addition, you’re told that the firmissued $7,250 in new equity during 2010 and redeemed $7,100 inoutstanding long term debt.

a.       What is the 2010 operatingcash flow?

b.      What is the 2010 cash flow tocreditors?

c.       What is the 2010 cash flowto stockholders?

d.      If net fixed assets increased by$22,400 during the year, what was addition to net working capital(NWC)

Explanation / Answer

Income Statement

                       Sales                        $167,000     

                       Costs                         91,000                          

                       Depreciation               8,000

                       Other expenses          5,400                  

                       EBIT                          $62,600     

                       Interest                      11,000                  

                       Taxableincome          $51,600     

                       Taxes                       18,060     

                       Net income          $33,540        

                       Dividends                   $9,500                                        

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