CORPORATE FINANCE>CUSTOM<
CORPORATE FINANCE>CUSTOM<
11th Edition
ISBN: 9781308755465
Author: Ross
Publisher: MCG/CREATE
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Chapter 2, Problem 19QP

Accounting Values versus Cash Flows In Problem 18, suppose Rainbow Umbrella Corp. paid out $34,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what was the change in the firm’s long-term debt account?

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6) During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest and $740 in dividends, and had an operating cash flow of $16,207. The firm acquired $33,500 in new fixed assets and sold $8,400 of old assets. Net working capital declined by $1,592 during the year. What is the annual cash flow to stockholders?
The Lakeside Inn had operating cash flow of $55,550 and firm's net capital spending was $14,000. Also, the firm decreased net working capital by $2,500 from prior year. Depreciation was $8,700 and interest paid was $18,800. No new long-term debt was issued. What is the amount of the cash flow to stockholders?
During the year, D-Bat increased it accounts receivable by $150, decreased its STNP by $185 and decreased its accounts payable by $80, paid dividends of $50, increased its LTD by $100, decreased its inventory by $50 and issued $25 of common stock. What is the cash flow from financing activities?

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CORPORATE FINANCE>CUSTOM<

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