Titan Football Manufacturing had the following operating results for 2014: sales

Question

Titan Football Manufacturing had the following operating results for 2014: sales = $23,730; cost of goods sold = $16,780; depreciation expense = $2,840; interest expense = $414; dividends paid = $616. At the beginning of the year, net fixed assets were $16,560, current assets were $2,940, and current liabilities were $2,592. At the end of the year, net fixed assets were $18,840, current assets were $3,528, and current liabilities were $2,484. The tax rate for 2014 was 35 percent. (Enter your answer as directed, but do not round intermediate calculations.)

What is net income for 2014? (Round your answer to the nearest whole dollar amount (e.g., 32).)

What is the operating cash flow during 2014? (Round your answer to the nearest whole dollar amount (e.g., 32).)

What is the cash flow from assets during 2014? (Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar amount (e.g., 32).)

What is the cash flow to creditors during 2014? (Round your answer to the nearest whole dollar amount (e.g., 32).)

What is the cash flow to stockholders during 2014? (Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar amount (e.g., 32).)

Titan Football Manufacturing had the following operating results for 2014: sales = $23,730; cost of goods sold = $16,780; depreciation expense = $2,840; interest expense = $414; dividends paid = $616. At the beginning of the year, net fixed assets were $16,560, current assets were $2,940, and current liabilities were $2,592. At the end of the year, net fixed assets were $18,840, current assets were $3,528, and current liabilities were $2,484. The tax rate for 2014 was 35 percent. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

1) NET INCOME FOR 2014 Sales 23730 Cost of goods sold 16780 Gross profit 6950 Less: Operating exenses Depreciation 2840 Operating profit 4110 Interest expense 414 Profit before tax 3696 Tax @ 35% 1294 Net Income 2402 2) OPERATING CASH FLOW: EBIT+Depreciation-Taxes 5656 (4110+2840-1294) 3) CASH FLOW FROM ASSETS: operating cash flow-capital spending-addition to NWC (5656-2280-(1044-348) 2680 4) CASH FLOW TO CREDITORS: 414 (interest paid - new net borrowing) or Cash flow from assets - cash flow to equity = 2280-616=1664 5) CASH FLOW TO STOCK HOLDERS: 616 (dividends paid - new equity raised) or cash flow from assets- cash flow to creditors = 2680-414 = 2266 Note: Details of new borrowing or new equity not given

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