2017 2018 Sales $2,900 $3,300 COGS 2,030 2,310 Interest 410 420 Dividends 56 79 Depreciation 290...

	2017	2018
Sales	$2,900	$3,300
COGS	2,030	2,310
Interest	410	420
Dividends	56	79
Depreciation	290	330
Cash	250	150
Receivables	242	412
Current liabilities	900	1,100
Inventory	1,015	900
Long-term debt	3,200	3,100
Net fixed assets	6,000	5,700
Tax rate	34%	34%

What is cash flow to stockholders for 2018?
A. $79
B. $189
C. $445
D. $524
E. $603

Why is the answer E? please explain.

Solutions

Expert Solution

Answer;

Option E $603

	2018(Amount$)
Sales	3300
Cost of good sold	2310
EBIT & Depriciation	990
Depriciation	330
EBIT	660
Interest	420
EBT	240
TAX@34%	81.6
EAT	158.4

Cash Flow from working capital change

	Cash increases	Cash Decreases
Receivable		170

inventory	115
Current Libilities	200
Total	315	170

Net Cash inflow from working capital change = $315-$170 = $145

Cash Flow from Financial activity

(long term debt) = $3200 (2017) - $3100 (2018) = $100 cash outflow

Dividend paid = $79 cash outflow

Cash Flow from investing Activity(Net Fixed Assets) = $6000(2017) - ($5700+330)(2018) = $30 cash Outflow

Non Cash Item = $330 (Depriciation)

Total Cash flow for company = Net profit + non cash Item + Cash from working capital change + cash from investing + cash From financial + opening cash - closing cash

= $158.4 + $330 + $145 -$100- $79 -$30 +$250 - $150

=$524. 4 or $524

Total cash flow for stakeholders = company's cash flow + dividend

= $524 + $79

= $603

I am trying to help you out with all my effort and heart. Please don’t forget, to like the answer if it was helpful. It keeps me Motivated.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

2017 2018 Sales $ 2,900 3,300 COGS 2,030 2,310 Interest 410 420 Dividends 56 79 Depreciation...

2017 2018 Sales $ 2,900 3,300 COGS 2,030 2,310 Interest 410 420 Dividends 56 79 Depreciation 290 330 Cash 250 150 Receivables 242 412 Current liabilities 900 1,100 Inventory 1,015 900 Long-term debt 3,200 3,100 Net fixed assets 6,000 5,700 Retained earnings 1,050 ? Tax rate 34% 34% Given the above information, what is the operating cash flow and retained earnings balance for 2018?

2017 2018 Sales $ 785 COGS 460 Interest 35 Dividends 17 Depreciation 210 Cash 70 75...

2017 2018 Sales $ 785 COGS 460 Interest 35 Dividends 17 Depreciation 210 Cash 70 75 Accounts receivables 563 502 Accounts Payable 390 405 Inventory 662 640 Long-term debt 340 410 Net fixed assets 1,680 1,413 Common stock 700 235 Tax rate 35% 35% Calculate the EBIT 426 90 535 115 Calculate the net income 49 60 52 46 Calculate the cash flow from operation -226 194 238 360 Calculate the cash flow from investment 57 485 -43 98 Calculate...

ABC Inc. has sales of $44,500, costs of $19,400, depreciation expense of $2,900, and interest expense...

ABC Inc. has sales of $44,500, costs of $19,400, depreciation expense of $2,900, and interest expense of $2,400. If the tax rate is 35%, what is the operating cash flow, or OCF? (Omit $ sign in your response.)

sales revenue 300,000 COGS 180,000 Selling and Admin 30,000 Interest rev 6,000 Dividends declared and paid...

sales revenue 300,000 COGS 180,000 Selling and Admin 30,000 Interest rev 6,000 Dividends declared and paid 9,000 Loss from discontinued 15,000 Dividend rev 8,000 Interest ex 8,000 What is the net amount of non-operating revenue and expenses? -81,000 -6,000 -(9,000) -(3,000)

2018 2017 Sales revenue 9,245,000 Interest revenue 850,000 Royalties revenue 1,450,000 Dividend revenue 150,000 Depreciation-building 147,500...

2018 2017 Sales revenue 9,245,000 Interest revenue 850,000 Royalties revenue 1,450,000 Dividend revenue 150,000 Depreciation-building 147,500 Depreciation-plant 262,500 Depreciation-equipment 75,000 Research and development expenditure 1,650,000 Cost of goods sold 4,005,000 Warranty expense 195,000 Wages and salaries expense 3,475,000 Long service leave expense 235,000 Interest expense 305,000 Rates and taxes on property 145,500 Doubtful debts expense 142,500 Accounts receivable 675,000 375,000 Estimated uncollectible debts 182,000 95,000 Interest receivable 300,000 275,000 Royalties receivable 920,000 745,000 Land (at cost) 2,500,000 2,500,000 Buildings 3,200,000...

2017 2018 Sales $ 2,050 $ 2,200 Depreciation 295 295 Cost of goods sold 705 801...

2017 2018 Sales $ 2,050 $ 2,200 Depreciation 295 295 Cost of goods sold 705 801 Other expenses 170 140 Interest 137 158 Cash 1,075 1,099 Accounts receivable 1,423 1,603 Short-term notes payable 208 195 Long-term debt 3,600 4,200 Net fixed assets 9,015 9,230 Accounts payable 1,129 1,095 Inventory 2,530 2,600 Dividends 250 ? Common Shares 1,000 Tax rate 40% 40% 2017 2018 Sales $ 2,050 $ 2,200 Depreciation 295 295 Cost of goods sold 705 801 Other expenses 170...

Salim, a self-employed plumber, received the following income in 2017/2018: Building society interest £ 4,200 Dividends...

Salim, a self-employed plumber, received the following income in 2017/2018: Building society interest £ 4,200 Dividends from a UK company £ 3,800 Trading Income £ 80,000 He paid allowable interest of £3,000 on 15 August 2017/2018. The following tax rates are applicable during the fiscal year. BAND CATEGORY TAX RATE OTHER INCOME Basic rate 0 - £37,400 20% Higher rate 37401-150,000 40% SAVING INCOME Starting rate 0 - £2,440 10% Basic rate 2441-37400 20% Higher rate 37401-150,000 40% DIVIDEND...

Sales=35,420; Cost of good sold=25,260; Depreciation expense=6,000; Interest expense=2,715;Dividends paid=2,000. At the beginning of the year,...

Sales=35,420; Cost of good sold=25,260; Depreciation expense=6,000; Interest expense=2,715;Dividends paid=2,000. At the beginning of the year, net fixed assets were 19,950, current assets were 7,065, and current liabilities were 3,938. At the end of the year, net fixed assets were 24,500, current assets were 8,690, and current liabilities were 4,680. The tax rate was 22 percent. 1. What was the operating cash flow? 2. What was the net capital spending? 3. What was the cash flow from assets? 4. If...

sales=$10,980 cost of goods sold=$8,100 depreciation expense=$1,440 interest expense=$180 dividends paid=$270 Tax rate for the year...

sales=$10,980 cost of goods sold=$8,100 depreciation expense=$1,440 interest expense=$180 dividends paid=$270 Tax rate for the year was 35% what is the operating cash flow for the year

Thomson Corporation had the following operating results for 2019 (in 000’s): sales of $30,600; cost of goods sold of $21,800; depreciation expense of $4,200; interest expense of $1,040; dividends paid of $1,000

Thomson Corporation had the following operating results for 2019 (in 000’s): sales of $30,600; cost of goods sold of $21,800; depreciation expense of $4,200; interest expense of $1,040; dividends paid of $1,000. At the beginning of the year, net fixed assets were $23,600, current assets were $6,800, and current liabilities were $3,800. At the end of the year, net fixed assets were $25,800, current assets were $7,900, and current liabilities were $3,900. Total taxes are $1,500 ($1,424 paid, and $76...

Subjects