Problem 2-14 Calculating Total Cash Flows [LO4] Volbeat Corp. shows the followin

Question

Problem 2-14 Calculating Total Cash Flows [LO4] Volbeat Corp. shows the following information on its 2015 income statement: sales $390,000; costs $295,000, other expenses = $7,900; depreciation expense = $19,900; interest expense = $14,600; taxes $18,410; dividends $12,000. In addition, you're told that the firm issued $6,100 in new equity during 2015 and redeemed $4,600 in outstanding long-term debt. a. What is the 2015 operating cash flow? (Do not round intermediate calculations.) Operating cash flow b. What is the 2015 cash flow to creditors? (Do not round intermediate calculations.) Cash flow to creditors c. What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.) Cash flow to stockholders d. If net fixed assets increased by $22,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) Addition to NWC

Explanation / Answer

Problem 2-14

Problem 2-19

Sales          390,000 Cost of sales          295,000 Other expenses              7,900 depreciation expense            19,900 interest expense            14,600 taxes            18,410 dividends            12,000 Income before interest and tax (Operating income) Sales          390,000 Less Cost of sales          295,000 Less Other expenses              7,900 Less depreciation expense            19,900 EBIT            67,200 Add depreciation            19,900 Operating cash flow            87,100 Cashflow to creditors Payment of long term debt              4,600 Cashflow to stock holders Less dividends            12,000 Add new equity              6,100 Cashflow to stock holders            (5,900) Addition to NWC would be zero as fixed assets are not related to NWC

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.