In: Finance
Provide a solution to this problem. Any ideas on how it can be solved.
Comprehensive problem (discussion board):
• Current Accounts
– 2009: CA = $4,400; CL = $1,500
– 2008: CA = $3,500; CL = $1,200
• Fixed Assets and Depreciation
– 2009: NFA = $3,400; 2008: NFA = $3,100
– Depreciation Expense = $400
• Long-term Debt and Equity
– 2009: LTD = $4,000; Common stock = $500
– 2008: LTD = $3,950; Common stock = $400
• Income Statement
– EBIT = $2,000; Taxes = $300
– Interest Expense = $350
• If the Cash Flow Identity holds, compute the dividends paid out by the company.