Question

Finance Experts’ Fine Cars and Trucks Balance Sheet as of December 31 ASSETS 2020 2021 2022 2023 ______________________________________________________________________________ Current Assets Cash $ 100 300 500 0 Accounts Receivable 200 200 200 0 Inventory 300 500 500 0 --------------------------------------------------------------- TOTAL 600 1000 1200 0 Fixed Assets Net Plant and Equipment 4000 3800 3600 0 -------------------------------------------------------------- TOTAL ASSETS 4600 4800 4800 0 LIABILITIES AND EQUITY ______________________________________________________________________________ Current Liabilities Accounts payable 200 200 200 0 Notes payable 400 400 400 0 ------------------------------------------------------------- Total 600 600 600 0 Long-term debt 0 0 0 0 Stockholders' Equity Common Stock and Paid-in Surplus 200 200 200 0 Retained Earnings 3800 4000 4000 0 --------------------------------------------------------------- Total Stockholder’s Eq 4000 4200 4200 0 TOTAL LIABILITIES & EQ 4600 4800 4800 0 Finance Experts’ Fine Cars and Trucks INCOME STATEMENT as of December 31 2021 2022 2023 Net Sales 2,000 4,000 6,000 Cost-of-goods sold 1200 2400 3,000 Depreciation 200 200 200 ------ ------ ----- Earnings before interest and taxes 600 1400 2800 Interest 0 0 0 ------ ------ ------- Taxable Income 600 1400 2800 Taxes m 100 400 600 --------- ------- ------ Net Income 500 1000 2200 Retained Earnings 200 0 0 Dividends 300 1000 6200 What is the “total cash flow from assets” for 2022? 3) What is “the cash flow to owners (stockholders)” for 2021? 4) What are the operating cash flows for 2021?

Answer 1