Thompson's Jet Skis has operating cash flow of $994. Depreciation is $102, taxes are $298, and...

Thompson's Jet Skis has operating cash flow of $994. Depreciation is $102, taxes are $298, and interest paid is $65. A net total of $82 was paid on long-term debt. The firm spent $481 on fixed assets and increased its net working capital by $32. What is the amount of the cash flow to stockholders?h

Expert Solution

THE CASH FLOW IDENTITIES ARE:
CASH FLOW FROM ASSETS= CASH FLOW TO CREDITORS + CASH FLOW TO STOCKHOLDERS
OPERATING CASH FLOW:
EBIT + DEPRECIATION - TAXES
NET CAPITAL SPENDING:
ENDING NET FIXED ASSETS - BEGINNING NET FIXED ASSETS + DEPRECIATION
CHANGE IN NET WORKING CAPITAL:
ENDING NET WORKING CAPITAL - BEGINNING NET WORKING CAPITAL
CASH FLOW TO CREDITORS:
INTEREST PAID - NET NEW BORROWING
CASH FLOW TO STOCKHOLDERS:
DIVIDENDS PAID - NEW EQUITY RAISED
Calculations are given below:
CASH FLOW FROM ASSETS = 994-481-32 =	$ 481
Cash flow to creditors = 65+82 =	$ 147
Now,
CASH FLOW FROM ASSETS= CASH FLOW TO CREDITORS + CASH FLOW TO STOCKHOLDERS
Substituting available values in the above equation
we have:
481 = 147+Cash flow to stock holders
Cash flow to stock holders = 481-147 =	$ 334
Answer: [A] $334

jeff jeffy answered 1 year ago

2. In developing the cash flow statement, why is depreciation added back to operating cash flows...

2. In developing the cash flow statement, why is depreciation added back to operating cash flows and to fixed assets?

In 2019, Firm X has cash flow from operating activities of $1500, depreciation $200, interest expenses...

In 2019, Firm X has cash flow from operating activities of $1500, depreciation $200, interest expenses $300, tax rate 20 percent. Compared to 2018, Cash increase $200, accounts receivable increases $150, inventory decreases $230, accounts payable increases $210, other current liabilities increase $100. There is no deferred tax. What is the operating cash flow of Firm X in 2019? A) $1690 B) $1880 C) $1410 D) $2190 E) $1720

The MoMi Corporation’s cash flow from operations before interest, depreciation and taxes was $3.0 million in...

The MoMi Corporation’s cash flow from operations before interest, depreciation and taxes was $3.0 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 18% of pretax cash flow each year. The tax rate is 21%. Depreciation was $360,000 in the year just ended and is expected to grow at the same rate as the operating cash flow....

The MoMi Corporation’s cash flow from operations before interest, depreciation and taxes was $1.6 million in...

The MoMi Corporation’s cash flow from operations before interest, depreciation and taxes was $1.6 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 16% of pretax cash flow each year. The tax rate is 21%. Depreciation was $220,000 in the year just ended and is expected to grow at the same rate as the operating cash flow....

The Lakeside Inn had an operating cash flow of $48,450.Depreciation was $6,700 and interest paid...

The Lakeside Inn had an operating cash flow of $48,450. Depreciation was $6,700 and interest paid was $2,480. A net total of $2,620 was paid on long-term debt. The firm spent $24,000 on fixed assets and decreased net working capital by $1,330. What was the amount of the cash flow to stockholders? Solve using Excel Formulas

operating cash flow. find the operating cash flow for the year for robinson and sons if...

operating cash flow. find the operating cash flow for the year for robinson and sons if it had sales of $81,200,000,,, cost of goods of $35,500,000, sales and administrative costs of $6,200,000, depreciation expense of $7,000,000, and a tax rate 0f 30%. the operating cash flow is ....... (round to the nearest dollar)

Operating cash flow.??Find the operating cash flow for the year for Harper? Brothers, Inc. if it...

Operating cash flow.??Find the operating cash flow for the year for Harper? Brothers, Inc. if it had sales revenue of $308,600,000?, cost of goods sold of $135,600,000?, sales and administrative costs of $39,300,000?, depreciation expense of $65,700,000?, and a tax rate of 40%.

Describe and explain three different cash flows: operating cash flow, investment cash flow, and cash flow...

Describe and explain three different cash flows: operating cash flow, investment cash flow, and cash flow from financing activities. What is the relative importance of each, and what factors impact your assessment? Does it vary by industry or business maturity? Imagine that you were structuring a business from the ground up--what percentage of cash flow would you target for each of these three types?

Air passes through a jet engine nozzle operating at steady state. The flow at the nozzle...

Air passes through a jet engine nozzle operating at steady state. The flow at the nozzle inlet has a temperature of 900° F. The nozzle inlet has an area of 5 ft2. The flow at the nozzle outlet has a temperature of 875° F, a specific volume of 90 ft3/lb, and a velocity of 600 ft/s. The nozzle outlet has an area of 2 ft2. Model the air as an ideal gas with constant specific heats. Evaluate the specific heats...

Use the following information to compute Fixed costs, Depreciation, and Operating Cash Flow: Price per unit &nbs

Use the following information to compute Fixed costs, Depreciation, and Operating Cash Flow: Price per unit 71.00 Variable cost per unit 52.75 Cash Break Even Quantity 7,500 units Accounting Break Even Quantity 9,800 units Financial Break Even Quantity 13,000 units Fixed costs Depreciation Operating Cash Flow

Question