You are required to: iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC
You are required to: iv) Calculate the cash flow from assets v) Calculate net capital spending vi) Calculate change in NWC
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 53P: Balance sheets for Brierwold Corporation follow: Additional transactions were as follows: a....
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Question
Consider the following financial information and answer the questions
that follow:
Sales : $250,000
Costs : $134,000
Depreciation : $10,200
Operating expenses : $6,000
Interest expenses : $20,700
Taxes : $18,420
Dividends : $10,600
Addition to
Long term debt repaid : $9,300
New Equity issued : $8,470
New fixed assets acquired : $15,000
You are required to:
iv) Calculate the cash flow from assets
v) Calculate net capital spending
vi) Calculate change in NWC
PLEASE SHOW WORKING
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Step 1: Introduction to cash flow from assets
VIEWStep 2: Working note- Calculation of operating cash flow
VIEWStep 3: Requirement iv- Calculation of cash flow from assets
VIEWStep 4: Requirement v- Calculation of net capital spending
VIEWStep 5: Requirement vi- Calculation of change in net working capital
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