2. National Importers paid $38,600 in dividends and $24.615 in interest over the

Question

2. National Importers paid $38,600 in dividends and $24.615 in interest over the past year while net working capital increased from $15,506 to $17.411. The company purchased $38.700 in net new fixed assets and had depreciation expenses of $14.784. During the year, the firm issued $20.000 in net new equity and paid off $23,800 in long-term debt. (8 poinrs) a) What is the cash flow to creditors? (2 points) b) What is the cash flow to shareholders? (2 points) c) What is the cash flow from assets? (2 points) d) What is the operating cash flow? (2 points)

Explanation / Answer

2a) Cash Flow to Creditors Interest paid 24615 Long term debt paid back 23800 Total 48415 2b) Cash Flow to shareholders Dividends 38600 New equity -20000 Total 18600 2c) Cash Flow from Assets -38700 2d) Operating Cash flow Depreciation 14784 Less: Increase in WC 1905 Total 16689 1) Wes Motors Total Assets 98300 Total Liability & Equity 98300 Less: Equity 41600 Less: Debt 38600 Current Liabilities 18100 NWC 11300 Current Assets 29400

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