Question

Teeswater Corp. shows the following information on its 2018 statement of comprehensive income: sales = $235,000; costs = $141,000; other expenses = $7,900; depreciation expense = $17,300; interest expense = $12,900; taxes = $19,565; dividends = $12,300. In addition, you're told that the firm issued $6,100 in new equity during 2018 and redeemed $4,500 in outstanding long-term debt. a. What is the 2018 operating cash flow? (Omit $ sign in your response.) Operating cash flow b. What is the 2018 cash flow to creditors? (Omit $ sign in your Cash flow to creditors c. What is the 2018 cash flow to shareholders? (Omit $ sign in your response.) Cash flow to stockholders $23600 d. If net fixed assets increased by $25,000 during the year, what was the addition to NWC? (Omit $ sign in your response.) Addition to NWC %24

Answer 1

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05:39 | 0 = = = = = 3 g 2 * 5 ENG 27-01-2020 6 BQ36 BO BP BQ BR BS BT BU BV BW BX BY BZ CA CE* LESS LESS LESS LESS SALES COSTS OTHER EXPENSES DEPRECIATION EBIT INTEREST EBT TAX NET INCOME dividends addition to retained earnings 235000 141000 7900 17300 68800 12900 63800 19565 44235 12300 31935 LESS LESS OCF = EBIT + DEPRECIATION - TAXES OCF = 68800 + 17300 - 19565 = 66535 17400 cashflow to creditors interest paid -net new borrowings (12900 - (-4500) 6200 cashflow to stockholders dividends paid - net new equity 12300 - 6100 ARM, MSI.confidenceINDEX CURRENCY NPV OCF CASH FLOW STATW FCF LOAN CROSS OVER GM HPRAM TAX HEDGING MONEY MARKET GRO... →

2 v 05:40 * HA ENG ENG 27-01-20206 B083 BO BP BQ BR BS I BT BU BV BW Bx BY BZ CA CE- addition to net working capital cash flow from assets = cash flow to creditors + cashflow to stockholders cash flow from assets = 17400 + 6200 = 23600 net capital spending = depreciation + increase in NET fixed assets net capital spending = 17300 + 25000 = 42300 cashflow from assets = OCF - changes in working capital - net capital spending 23600 = 66535 - changes in working capital - 42300 changes in working capital = 66535-42300-23600 = 635 addition to net working capital = 635 NPV OCF CASH FLOW STATWFCF ARM, MSI, confidenceINDEX CURRENCY LOAN CROSS OVER GM HPRAM TAX HEDGING MONEY MARKET GRO' ...