a)
To determine: The operating cash flow.
Introduction:
Operating cash flow refers to the cash from operating activities or primary activities of the firm.
b)
To calculate: The cash flow to creditors.
Introduction:
The cash flow to creditors refers to the net payment received by the creditors of the company. It refers to the interest paid to the creditors minus the net fresh debt borrowed by the company.
c)
To calculate: The cash flow to stockholders.
Introduction:
The cash flow to stockholders’ refers to the dividend paid to the shareholders of the company minus the fresh equity raised by the company. In other words, it refers to the net payment received by the shareholders of the company.
d)
To calculate: The addition to net working capital.
Introduction:
Net working capital is the current assets minus the current liabilities of the company. There will be a change in net working capital due to the increase or decrease in current assets.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
- The 2017 balance sheet of Kerber’s Tennis Shop, Incorporated, showed $890,000 in the common stock account and $6.65 million in the additional paid-in surplus account. The 2018 balance sheet showed $785,000 and $8.15 million in the same two accounts, respectively. If the company paid out $580,000 in cash dividends during 2018, what was the cash flow to stockholders for the year? Multiple Choice $-815,000 $205,000 $310,000 $815,000 $8,355,000arrow_forwardHampton Industries had $39,000 in cash at year-end 2017and $11,000 in cash at year-end 2018. The firm invested in property, plant, and equipmenttotaling $210,000. Cash flow from financing activities totaled 1$120,000.a. What was the cash flow from operating activities?b. If accruals increased by $15,000, receivables and inventories increased by $50,000, anddepreciation and amortization totaled $25,000, what was the firm’s net income?arrow_forwardHampton Industries had $50,000 in cash at year-end 2015 and $14,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $280,000. Cash flow from financing activities totaled +$210,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Enter cash outflows with a minus sign.$ If accruals increased by $45,000, receivables and inventories increased by $185,000, and depreciation and amortization totaled $61,000, what was the firm's net income?arrow_forward
- Forecast the Statement of Cash Flows Following are the income statements and balance sheets of Macy's, Inc. Consolidated Statement of Income, Fiscal Years Ended ($ millions) 2014 Estimated Feb. 2, 2013 Net sales $29,070 $27,686 Cost of goods sold 17,355 16,538 Gross margin 11,715 11,148 Selling, general and administrative expenses 8,895 8,482 Impairments, store closing costs and (gain) on sale of leases -- 5 Operating income 2,820 2,661 Interest Expense 425 425 Premuim on early retirement debt (loss) -- (137) Interest income 3 3 Income before income taxes 2,398 2,102 Federal, state and local income tax expense 875 767 Net Income $1,523 $1,335 Consolidated Balance Sheets (millions) 2014 Estimated Feb. 2, 2013 Assets Current Assets Cash and cash equivalents $1,919 $1,836 Short-term investments 1,478 0 Receivables 378 371 Merchandise inventories 5,581 5,308 Prepaid expenses and other current assets 378 361 Total current assets…arrow_forwardVolbeat Corp. shows the following information on its 2015 income statement: sales = $255,000; costs = $156,000; other expenses = $7,900; depreciation expense = $15,600; interest expense = $14,800; taxes = $21,245; dividends = $12,000. In addition, you're told that the firm issued $6,300 in new equity during 2015 and redeemed $4,800 in outstanding long-term debt. a. What is the 2015 operating cash flow? b. What is the 2015 cash flow to creditors? c. What is the 2015 cash flow to stockholders?arrow_forwardDetermine the amount of net cash flow for o'hare for 2017 if the sales revenue was 82,300, the depreciation expense was 14,300, and the net income was 68,000arrow_forward
- The company’s total assets at year-end 2016 were CHF 131,900 million. What reasonable conclusions an analyst might make about the companies efficiency, Companies solvency, Liquidity and Profitability? In millions of CHF Notes 2018 2017 * Sales 3 91,439 89,590 Cost of goods sold (46,070) (45,571) Trading operating profit 3 13,789 13,277 Operating profit 13,752 10,156 Profit before taxes, associates and joint ventures 12,991 9,460 Taxes 13 (3,439) (2,773) Profit for the year 10,468 7,511 Notes 2018 2017 * Assets Current assets Cash and cash equivalents 12/16 4,500 7,938 Short-term investments 12 5,801 655 Inventories 6 9,125 9,177 Trade and other receivables 7/12 11,167 12,036 Total current assets 41,003 31,884 Total non-current assets 96,012…arrow_forwardAmes Company reported 2017 net income of $151,000. During 2017, accounts receivable increased by $13,000 and accounts payable increased by $9,500. Depreciation expense was $44,000. Prepare the cash flows from operating activities section of the statement of cash flows.arrow_forwardBloom Corporation had the following 2017 income statement. Check the below image for income statements. The following accounts increased during 2017: Accounts Receivable $12,000, Inventory $11,000, and Accounts Payable $13,000.Prepare the cash flows from operating activities section of Bloom’s 2017 statement of cash flows using the direct method.arrow_forward
- Colbert Corporation had the following 2017 income statement. Revenues $100,000 Expenses 60,000 $ 40,000 In 2017, Colbert had the following activity in selected accounts. Check the below image for selected account's activity. Prepare Colbert’s cash flows from operating activities section of the statement of cash flows using (a) the direct method and (b) the indirect method.arrow_forwardHome Depot reports net operating profit after tax (NOPAT) of $7,507 million in 2016. Its net operating assets at the beginning of 2016 are $24,685 million and are $25,415 million at the end of 2016. What are Home Depot's free cash flows to the firm (FCFF) for 2016?arrow_forwardFor 2018, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 8%, and the federal-plus-state income tax rate was 40%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2017?arrow_forward
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning