10. 15.00 points Welland Co. shows the $18,830; Welland Co shows the tollowing n
ID: 2818544 • Letter: 1
Question
10. 15.00 points Welland Co. shows the $18,830; Welland Co shows the tollowing nformation on its 2016 Incottles$1570costs $81,100 other expenses$4,400; depreciation old that the firm issued $3,400 in new equi ty during 2016 and redeemed $5,500 in outstanding long-term debt. What is the 2016 operating cash flow? (Do not round Intermedlate calculations and round your answer Operating cash flow $ b. What is the 2016 cash fow to creditors? (Do not round intermediate calculations and round your answer to the nearest whole number, .g,32.) Cash flow to creditiors c. What is the 2016 cash flow to stockholders? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Cash flow to stockholders $ d. If net fixed assets increased by $20,650 during the year, what was the addition to NWC? (Do not round intermediate calculations and round your answe Addition to net working capital the noareat whole number, e.g., 32.) References eBook & ResourcesExplanation / Answer
A)
OPerating cash flow = Net Income +depreciation (non cash)
= 52670+18830
= 71500
b)cash flow to creditors =Interest expense - [Ending Long term debt -Beginning long term debt]
= 0 - [--5500]
=0 +5500
= 5500
c)cash flow to stockholders = Dividend - [Ending equity -Beginning equity]
= 7600 - [3400]
= 7600 -3400
= 4200
d)Cash flow from asset =cash flow to creditors + cash flow to stockholders
= 5500 + 4200
= 9700
d)Capital spending = increase in net fixed asset +depreciation
= 20650 +18830
= 39480
cash flow from asset = operating cash flow -capital spending -addition to NWC
9700 = 71500 - 39480 -addition to NWC
addition to NWC = 71500-39480-9700
= 22320
Sales 157000 less: cost (81100) other expense (4400) Depreciation expense (18830) Net Income 52670Related Questions
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