![jessicathegr823](/avatars/10616.jpg)
jessicathegr823
10.09.2019 •
Business
Cusic industries had the following operating results for 2019: sales = $34,621; cost of goods sold = $24,359; depreciation expense = $6,027; interest expense = $2,725; dividends paid = $2,023. at the beginning of the year, net fixed assets were $19,970, current assets were $7,075, and current liabilities were $4,010. at the end of the year, net fixed assets were $24,529, current assets were $8,702, and current liabilities were $4,700. the tax rate was 25 percent. a. what is net income for 2019? (do not round intermediate calculations.) b. what is the operating cash flow for 2019? (do not round intermediate calculations.) c. what is the cash flow from assets for 2019? (a negative answer should be indicated by a minus sign. do not round intermediate calculations.) d-1. if no new debt was issued during the year, what is the cash flow to creditors? (do not round intermediate calculations.) d-2. if no new debt was issued during the year, what is the cash flow to stockholders? (a negative answer should be indicated by a minus sign. do not round intermediate calculations.)
Solved
Show answers
More tips
- F Food and Cooking Do Aphrodisiacs Really Work? Separating Fact from Fiction...
- C Computers and Internet Log-in: what is it and why do you need it?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
- F Food and Cooking Everything You Need to Know About Pasta...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
Answers on questions: Business
- B Business What is the typical number of payments that can be made toward paying off a revolving credit loan? a. one b. unlimited c. one hundred d. two...
- B Business Match each type of exchange rate system to the way the exchange rate is determined. 1.exchange rate determined by demand and supply of foreign currency 2.exchange rate pegged to the...
- M Mathematics For the scientific notation, write the correct standard form: 3.2 x 10-2...
- M Mathematics While watching a football game, Jordan decided to list yardage gained as positive integers and yardage lost as negative integers. After these plays, Jordan recorded 14, -7, and -9....
- M Mathematics Help math problem help...
- H History How did immigrants and minority groups change American cities before the Civil War? 1 They created a cultural melting pot. 2 They chartered nativist organizations. 3 They wrote new...
- M Mathematics NEED THESE ANSWERED ASAPSolve the inequality and graph its solution: 1.) X-15 4(-6+3x) 2) 6y-7 y+3...
- M Mathematics A pizza slice is in the shape of a circular sector OAB, with the central angle 0 = 50 deg and a radius of 7cm. 0 A B В Find the perimeter of the pizza slice. (no answer)...
- M Mathematics -4 + 2m2 - 1 + 3m - 5m - 6m2...
- P Physics In a coiled spring, the particles of the medium vibrate to and fro about their mean positions at an angle ofA 0° to the direction of propagation of wave.B 45° to the direction of propagation...
Ответ:
a. $1,132.50
b. $9,884.50
c. $10,586
d.1 $2,725
d.2 - $4,363.50
Explanation:
a. The computation of the net income is shown below:
= Sales - cost of good sold - depreciation expense - interest expense - income tax expense
= $34,621 - $24,359 - $6,027 - $2,275 - 377.50
= $1,132.50
The income tax expense
= ($34,621 - $24,359 - $6,027 - $2,275) × 25%
= $377.50
b. The operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense
= $34,621 - $24,359 - $6,027
= $4,235
And all other items would remain same
Now put these values to the above formula
So, the value would equal to
= $4,235 + $6,027- $377.50
= $9,884.50
c. Computation of the cash flow from assets for 2019 is shown below:
= Operating cash flow - net capital spending - changes in working capital
where, net capital capital = ending fixed assets - beginning fixed assets + depreciation
= $24,529 - $19,970 + $6,027
= $10,586
Changes in working capital = (ending balance of current assets - ending balance of current liabilities) - (beginning balance of current assets - beginning balance of current liabilities)
= ($8,702 - $4,700) - ($7,075 - $4,010)
= $4,002 - $3,065
= $937
Now put these values to the above formula
So, the value would equal to
= $9,884.50 - $10,586 - $937
= - $1,638.50
d.1 The computation of the cash flow to creditors is shown below:
= Interest expense - ending balance of long term debt + beginning balance of long term debt
= $2,725 - 0 + 0
= $2,725
d.2 The computation of the cash flow to stockholder is shown below:
= Cash flow from asset - cash flow to creditors
= - $1,638.50 - $2,725
= - $4,363.50
Ответ: