Stackhouse Industries had the following operating results for 2020: sales = $54,510; cost of goods sold = $37,430; depreciation expense = $5,830; interest expense = $1,325; dividends paid = $2,820. At the beginning of the year, net fixed assets were $33,200, current assets were $8,300, and current liabilities were $5,553. At the end of the year, net fixed assets were $42,820, current assets were $9,395, and current liabilities were $5,870. The tax rate was 24 percent. a.What was net income for 2020? (Do not round intermediate calculations.)b.What was the operating cash flow for 2020? (Do not round intermediate calculations.)c.What was the cash flow from assets for 2020? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)d-1.If no new debt was issued during the year, what was the cash flow to creditors? (Do not round intermediate calculations.)d-2.If no new debt was issued during the year, what was the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

Answer a. Earnings before interest and tax(EBIT) = Sales - Cost of Goods Sold - Depreciation Expense…

Answered: Stackhouse Industries had the following…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

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Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Stackhouse Industries had the following operating results for 2020: sales = $54,510; cost of goods sold = $37,430; depreciation expense = $5,830; interest expense = $1,325; dividends paid = $2,820. At the beginning of the year, net fixed assets were $33,200, current assets were $8,300, and current liabilities were $5,553. At the end of the year, net fixed assets were $42,820, current assets were $9,395, and current liabilities were $5,870. The tax rate was 24 percent.

a.	What was net income for 2020? (Do not round intermediate calculations.)
b.	What was the operating cash flow for 2020? (Do not round intermediate calculations.)
c.	What was the cash flow from assets for 2020? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)
d-1.	If no new debt was issued during the year, what was the cash flow to creditors? (Do not round intermediate calculations.)
d-2.	If no new debt was issued during the year, what was the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

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