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Graffiti Advertising, Inc., reported the following financial statements for the last two years. a. Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b.Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Graffiti Advertising, Inc., reported the following financial statements for the last two years. a. Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b.Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 48CE
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Graffiti Advertising, Inc., reported the following financial statements for the last two years.

a. Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

b.Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

c. Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

d. Calculate the cash flow from assets. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

 

e. Calculate the cash flow to creditors. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

f. Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

 

2016 Income Statement Sales Costs of goods sold Selling and administrative Depreciation EBIT Interest EBT Тахes $ 573,700 273,940 124,716 54,559 S 120,485 19,670 $ 100,815 40,326 $ 60,489 $ 11,300 S 49,189 Net income Dividends Addition to retained eamings Cash Accounts receivable Inventory Current assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 $ 13,490 18,977 13,811 $ 46,278 $ 9,487 14,491 $ 23,978 Accounts payable Notes payable Current liabilities $ 344,936 $ 391,214 Long-term debt Owner's equity Total liabilities and owners' equity $ 135,440 $231,796 $ 391,214 Net fixed assets Total assets Cash Accounts receivable Inventory Current assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 $ 14,476 21,082 22,771 $ 58,329 $ 10,529 16,483 $ 27,012 Accounts payable Notes payable Current liabilities $ 406,294 $ 464,623 Long-term debt Owner's equity Total liabilities and owners' equity $ 153,700 $ 283,911 $ 464,623 Net fixed assets Total assets
Transcribed Image Text:2016 Income Statement Sales Costs of goods sold Selling and administrative Depreciation EBIT Interest EBT Тахes $ 573,700 273,940 124,716 54,559 S 120,485 19,670 $ 100,815 40,326 $ 60,489 $ 11,300 S 49,189 Net income Dividends Addition to retained eamings Cash Accounts receivable Inventory Current assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 $ 13,490 18,977 13,811 $ 46,278 $ 9,487 14,491 $ 23,978 Accounts payable Notes payable Current liabilities $ 344,936 $ 391,214 Long-term debt Owner's equity Total liabilities and owners' equity $ 135,440 $231,796 $ 391,214 Net fixed assets Total assets Cash Accounts receivable Inventory Current assets GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 $ 14,476 21,082 22,771 $ 58,329 $ 10,529 16,483 $ 27,012 Accounts payable Notes payable Current liabilities $ 406,294 $ 464,623 Long-term debt Owner's equity Total liabilities and owners' equity $ 153,700 $ 283,911 $ 464,623 Net fixed assets Total assets
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