Use the following information for Taco Swell, Inc., (assume the tax rate is 30 p

Question

Use the following information for Taco Swell, Inc., (assume the tax rate is 30 percent) 6 2014 2015 $19,073 $ 17,436 Sales 1,886 Depreciation Cost of goods sold Other expenses 1,811 4,729 4,857 899 1,001 6,292 6,916 9,877 3.34/10 1,021 870 arded Interest Cash Scored Accounts receivable 8,190 Short-term notes 1.320 1,297 payable Long-term debt Net fixed assets Accounts payable Inventory Dividends 20,770 25,011 51,218 58,000 5,094 14,538 15,438 1,768 4,624 1,700 For 2015, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 1489.90o Cash flow from assets Cash flow to creditors Cash flow to $-3,240.00 $1,750.10 stockholders

Explanation / Answer

OCF =EBIT +Depreciation -Taxes ==9794+1886-2637.9=9042.10

Net Capial Spending =58000-51218+1886=8668

Cash flow from asset =OCF-Change in NWC-Net Capital Spending

9042.10-2334-8668=-1959.90

cash flow From Creditor =Interest paid -Net new borrowing =1001-+(25011-20770)=-3240

Cash flow to stockholders = Cash flow from assets – Cash flow to creditors

=-1959.90-(-3240)

=1280.10

2014 2015 Sales 19073 17436 Less Dep 1811 1886 Less Cost of Goods sold 4729 4857 Other Expense 1021 899 EBIT 11512 9794 Interest 870 1001 EBT 10642 8793 TAX 3192.6 2637.9 PAT 7449.4 6155.1

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