Finman

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 sales 586,000 COGS 247,000 Depreciation 43,000 Earnings before interest and taxes 296,000 Interest paid 32,000 Taxable Income 264,000 Taxes ( 35% ) 92,400 Net income 171,600 3) Net income 171,600 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 =