66. The Play House\'s December 31, 2013, balance sheet showed net fixed assets o
ID: 2734304 • Letter: 6
Question
66. The Play House's December 31, 2013, balance sheet showed net fixed assets of $1,238,000 and the December 31, 2014, balance sheet showed net fixed assets of $1,416,000. The company's 2014 income statement showed a depreciation expense of $214,600. What was the firm's net capital spending for 2014? A. $36,600
$42,400
$392,600
$404,400
$416,600
67. The December 31, 2013, balance sheet of Suzette's Market showed long-term debt of $638,100 and the December 31, 2014, balance sheet showed long-term debt of $574,600. The 2010 income statement showed an interest expense of $42,300. What was the firm's cash flow to creditors during 2014? A. $21,200
$26,700
$54,900
$102,400
$105,800
Explanation / Answer
66)firm's net capital spending for 2014=$(1,416,000-1,238,000)+214,600=$392,600
67) firm's cash flow to creditors during 2014= $ (638,100 -574,600)+ 42,300=$105,800 (the debt reduces from 638,100 to 574,600 so that net debt of 638,100 -574,600 is paid back to the creditors and in addition the interest $42,300 is paid to them)
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