cash flow (

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 32BEB: During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b....
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A company had sales of $600 and costs of $300. Depreciation was an additional $150, and interest paid was $30. Taxes were 40% of pretax income.
Dividends were $30. Beginning net fixed assets were $500 and ending net fixed assets were $750. The company started the year with a net working
capital of $510 and ended with $550. No shares of stock were issued that year.
Calculate operating cash flow (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 222
Calculate net capital spending (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400
Calculate cash flow from assets (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400
Calculate cash flow to bondholders (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 0
Transcribed Image Text:A company had sales of $600 and costs of $300. Depreciation was an additional $150, and interest paid was $30. Taxes were 40% of pretax income. Dividends were $30. Beginning net fixed assets were $500 and ending net fixed assets were $750. The company started the year with a net working capital of $510 and ended with $550. No shares of stock were issued that year. Calculate operating cash flow (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 222 Calculate net capital spending (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400 Calculate cash flow from assets (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 400 Calculate cash flow to bondholders (nearest dollar without dollar sign ($) or comma, e.g. 15000) Negative cash flow is -15000): 0
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