Dennis Co. shows the following information on its 2016 incomestatement: sales = $157,000; costs = $81,100; other expenses =$4,400; depreciation expense = $10,100; interest expense = $7,600;taxes = $18,830; dividends = $7,600. In addition, you're told thatthe firm issued $3,400 in new equity during 2016 and redeemed$5,500 in outstanding long-term debt.
a. What is the 2016 operating cash flow?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Operating cash flow $
b. What is the 2016 cash flow to creditors?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Cash flow to creditors $
c. What is the 2016 cash flow to stockholders?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Cash flow to stockholders $
d. If net fixed assets increased by $20,650 duringthe year, what was the addition to NWC? (Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)
Addition to net working capital $
Dennis Co. shows the following information on its 2016 incomestatement: sales = $157,000; costs = $81,100; other expenses =$4,400; depreciation expense = $10,100; interest expense = $7,600;taxes = $18,830; dividends = $7,600. In addition, you're told thatthe firm issued $3,400 in new equity during 2016 and redeemed$5,500 in outstanding long-term debt.
a. What is the 2016 operating cash flow?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Operating cash flow $
b. What is the 2016 cash flow to creditors?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Cash flow to creditors $
c. What is the 2016 cash flow to stockholders?(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Cash flow to stockholders $
d. If net fixed assets increased by $20,650 duringthe year, what was the addition to NWC? (Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)
Addition to net working capital $
Related questions
Graffiti Advertising, Inc., reported the following financialstatements for the last two years.
| 2016 Income Statement | |||
| Sales | $ | 567,200 | |
| Costs of goods sold | 274,005 | ||
| Selling and administrative | 124,729 | ||
| Depreciation | 54,572 | ||
| EBIT | $ | 113,894 | |
| Interest | 19,384 | ||
| EBT | $ | 94,510 | |
| Taxes | 37,804 | ||
| Net income | $ | 56,706 | |
| Dividends | $ | 10,000 | |
| Addition to retained earnings | $ | 46,706 | |
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 | |||||||
| Cash | $ | 13,360 | Accounts payable | $ | 9,500 | ||
| Accounts receivable | 18,990 | Notes payable | 14,504 | ||||
| Inventory | 13,798 | Current liabilities | $ | 24,004 | |||
| Current assets | $ | 46,148 | |||||
| Long-term debt | $ | 136,480 | |||||
| Net fixed assets | $ | 344,546 | Owner's equity | $ | 230,210 | ||
| Total assets | $ | 390,694 | Total liabilities and ownersâ equity | $ | 390,694 | ||
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 | |||||||
| Cash | $ | 14,346 | Accounts payable | $ | 10,516 | ||
| Accounts receivable | 21,095 | Notes payable | 16,470 | ||||
| Inventory | 22,758 | Current liabilities | $ | 26,986 | |||
| Current assets | $ | 58,199 | |||||
| Long-term debt | $ | 152,400 | |||||
| Net fixed assets | $ | 406,307 | Owner's equity | $ | 285,120 | ||
| Total assets | $ | 464,506 | Total liabilities and ownersâ equity | $ | 464,506 | ||
a. Calculate the operating cash flow.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Operating cash flow $
b. Calculate the change in net working capital.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Change in net working capital $
c. Calculate the net capital spending. (Donot round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)
Net capital spending $
d. Calculate the cash flow from assets. (Anegative answer should be indicated by a minus sign. Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)
Cash flow from assets $
e. Calculate the cash flow to creditors.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Cash flow to creditors $
f. Calculate the cash flow to stockholders.(A negative answer should be indicated by a minus sign. Donot round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)
Cash flow to stockholders $
Volbeat Corp. shows the following information on its 2015 income statement: sales = $380,000; costs = $300,000; other expenses = $7,900; depreciation expense = $15,000; interest expense = $13,000; taxes = $15,435; dividends = $10,000. In addition, youâre told that the firm issued $4,500 in new equity during 2015 and redeemed $3,000 in outstanding long-term debt.
| a. | What is the 2015 operating cash flow? (Do not round intermediate calculations.) |
| Operating cash flow | $ |
| b. | What is the 2015 cash flow to creditors? (Do not round intermediate calculations.) |
| Cash flow to creditors | $ |
| c. | What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.) |
| Cash flow to stockholders | $ |
| d. | If net fixed assets increased by $20,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) |
| Addition to NWC | $ |
