Based on the following information from Finco’s Financial statements, confirm that the Cash Flow Identity holds....

Based on the following information from Finco’s Financial statements, confirm that the Cash Flow Identity holds.

Balance Sheet

Current Accounts

◦ 2018: CA = 1500; CL = 1300

◦ 2019: CA = 2000; CL = 1700

Fixed Assets

◦ 2018: NFA = 3000; 2019: NFA = 4000

LT Liabilities and Equity

◦ 2018: LTD = 2200; Common Equity = 500; RE = 500

◦ 2019: LTD = 2800; Common Equity = 750; RE = 750

Income Statement

◦ EBIT = 2700; Interest Expense = 200; Taxes = 1000; Dividends = 1250

◦ Depreciation = 300

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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