Calculating Total Cash Flows [ LO4] Nightwish Corp. shows the following information on its 2021 income statement: Sal = $336,000; Costs = $194,700; Other expenses = $9,800; Depreciation expense = $20,600; Interest expense = $14,20 Taxes = $21,275; Dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2021 ar redeemed $5,400 in outstanding long-term debt. a. What is the 2021 operating cash flow? b. What is the 2021 cash flow to creditors? c. What is the 2021 cash flow to stockholders?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 29P
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13 Given Info. From Income Statement
Income Statement
Sales
336,000
For the year 2021
Costs
194,700
Sales
Other Expenses
9,800
Deprec. Exp.
20,600
Interest Exp.
14,200
Тахes
21,275
Dividends
21,450
New CS
7,100
2$
Debt Paid
5,400
a.
Operating cash flow
b.
Cash flow to creditors
C.
Cash flow to stockholders
d.
NFA increased by
53,200
Transcribed Image Text:13 Given Info. From Income Statement Income Statement Sales 336,000 For the year 2021 Costs 194,700 Sales Other Expenses 9,800 Deprec. Exp. 20,600 Interest Exp. 14,200 Тахes 21,275 Dividends 21,450 New CS 7,100 2$ Debt Paid 5,400 a. Operating cash flow b. Cash flow to creditors C. Cash flow to stockholders d. NFA increased by 53,200
Calculating Total Cash Flows [ LO4] Nightwish Corp. shows the following information on its 2021 income statement: Sales
= $336,000; Costs = $194,700; Other expenses = $9,800; Depreciation expense = $20,600; Interest expense = $14,200;
Taxes = $21,275; Dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2021 and
redeemed $5,40o in outstanding long-term debt.
a. What is the 2021 operating cash flow?
b. What is the 2021 cash flow to creditors?
c. What is the 2021 cash flow to stockholders?
d. If net fixed assets increased by $53,200 during the year, what was the addition to NWC?
Transcribed Image Text:Calculating Total Cash Flows [ LO4] Nightwish Corp. shows the following information on its 2021 income statement: Sales = $336,000; Costs = $194,700; Other expenses = $9,800; Depreciation expense = $20,600; Interest expense = $14,200; Taxes = $21,275; Dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2021 and redeemed $5,40o in outstanding long-term debt. a. What is the 2021 operating cash flow? b. What is the 2021 cash flow to creditors? c. What is the 2021 cash flow to stockholders? d. If net fixed assets increased by $53,200 during the year, what was the addition to NWC?
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