The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $

Question

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,400,000. $140,000 in the common stock account and $2,650,000 in the additional paid-in surplus account. The December 31 2014, balance sheet showed long-term debt of $1,580,000, $150,000 in the common stock account and $2,950,000 in the additional paid-in surplus account. The 2014 income statement showed an interest expense of $94,000 and the company paid out $145,000 in cash dividends during 2014. The firm's net capital spending for 2010 was $960,000, and the firm reduced its net working capital investment by 5125,000. (Enter your answer as directed, but do not round intermediate calculations.) Required What was the cash flow to creditors during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g. 1,234,567) Required: What was the firm's cash flow to stockholders during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dóllars, not millions of dollars (e.g.. 1,234,567)) Required: ? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g.. 1234.567) ash flow from asse Required euiwes the firm's operat answer in dollars, not millions of dollars (e.g. 1.234,567))

Explanation / Answer

15.
Net Income-dividends paid=addition to retained earnings
=>net income=3495
taxable income=net income/(1-tax rate)=3495/(1-40%)=5825
EBIT=taxable income+interest=5825+1400=7225
depreciation=sales-costs-EBIT=52800-38000-7225=7575

16.
Inventory common size=inventory/total assets=inventory/(net fixed assets+current assets)=89/(520+276)=11.18%

P.S.: I am allowed to answer only 4 questions

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.