P2-14 Calculating Total Cash Flows [LO4] Jetson Spacecraft Corp. shows the follo
ID: 2801865 • Letter: P
Question
P2-14 Calculating Total Cash Flows [LO4] Jetson Spacecraft Corp. shows the following information on its 2009 income statement: sales $209,000; costs = $101,000; other expenses-$5,100, depreciation expense-$9,000; interest expense-S13700; taxes-$28,070; dividends = $10,300. In addition, you're told that the firm issued $7,200 in new equity during 2009 and redeemed $8,800 in outstanding long-term debt. (a) What is the 2009 operating cash flow? (Click to select)e (b) What is the 2009 cash flow to creditors? (Click to select (c) What is the 2009 cash flow to stockholders? (Click to select) (d) If net fxed assets increased by $20,000 during the year, what was the addition to NWC? (Click to select) :Explanation / Answer
a)
Net Income = Sales - Costs - Other Expenses - Depreciation expense - Interest Expense- Taxes = 209,000-101,000-5100-9000- 13700-28070 = 52130
Operating cash flows = Net Income + Depreciation = 52130 + 9000 = $ 61,130
b)
2009 Cash flow to creditors= Interest Expense + Debt redemption = 13,700 + 8,800 = $ 22,500
c)
2009 cash flow to stock holders = Dividends - New Equity = 10,300 - 7200 = $ 3,100
d)
Net fixed assets has no relation to NWC . Can you provide more data wrt Balance sheet? Thanks
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