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In: Finance
Davis Inc. shows the following information on its annual income statement. Item Amount Sales $185,000 Costs...
Davis Inc. shows the following information on its annual income statement.
|
Item |
Amount |
|
Sales |
$185,000 |
|
Costs |
98,000 |
|
Other expenses |
6,700 |
|
Depreciation expense |
16,500 |
|
Interest expense |
9,000 |
|
Current taxes |
19,180 |
In addition, you are told the company paid dividends of $9,500, issued equity of $7,550, and retired debt of $7,100 during the year.
- What is the operating cash flow for the year?
- What is the cash flow to creditors?
- What is the cash flow to stockholders?
- Assume the operating cash flow is $60,000, the total cash flow to creditors is $2,000, and the total cash flow to stockholders is $16,000. During the year, the firm purchased additional fixed assets for $30,000 and did not sell any assets. What was the increase or decrease in the net working capital of the firm?
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