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Finman

Page 1 of 14
1) Assets = Liability + Shareholders’ equity
Shareholders’ equity= Assets – Liabilities
= ( 5,100 + 23,800 ) – ( 4,300 + 7,400 )
= 17,200

Net working capital = Current assets – Current liabilities
= 5,100 – 4,300
= 800

2) Net sales586,000
COGS247,000
Depreciation 43,000
Earnings before interest and taxes 296,000
Interest paid 32,000
Taxable Income264,000
Taxes ( 35% ) 92,400
Net income171,600

3) Net income171,600
Dividends 73,000
Addition to retained earnings 98,600

8) Net sales 27,500
COGS 13,280
Depreciation 2,300
Earnings before interest and taxes 11,920
Interest paid 1,105
Taxable Income 10,815
Taxes ( 35% ) 3,785
Net income 7,030

Earnings before interest and taxes 11,920
+ Depreciation 2,300
* Taxes 3,785
Operating cash flow 10,435

9) Ending net fixed assets 4,200,000
* Beginning net fixed assets 3,400,000
+ Depreciation 385,000
Net capital spending 1,185,000

10) Net working capital 2010 = Current assets – Current liabilities
= 2,100 – 1,380
= 720

Net working capital 2011= Current assets – Current liabilities
= 2,250 – 1,710
= 540

Ending NWC 540
* Beginning NWC 720
Change in NWC (180)

11) Net new borrowing = 2,900,000 – 2,600,000
= 300,000

Interest paid 170,000
* Net new borrowing 300,000
Cash flow to creditors (130,000)

12) Net new equity raised = ( 815,000 + 5,500,000 ) – ( 740,000 + 5,200,000 )
= 6,315,000 – 5,940,000
= 375,000
Dividends paid 490,000
* Net new equity raised 375,000
Cash flow to stockholders 115,000

13) Cash flow from assets = Cash flow to creditors + Cash flow to stockholders
= (-130,000) + 115,000...