Question

11) Cusic Industries had the following operating results for 2019: sales = $33,510; cost of goods sold = $23,820; depreciation expense = $5,917; interest expense = $2,670; dividends paid = $1,924. At the beginning of the year, net fixed assets were $19,860, current assets were $6,998, and current liabilities were $3,944. At the end of the year, net fixed assets were $24,430, current assets were $8,636, and current liabilities were $4,601. The tax rate was 24 percent.

a. What is net income for 2019? (Do not round intermediate calculations.)

b. What is the operating cash flow for 2019? (Do not round intermediate calculations.)

c. What is the cash flow from assets for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

d-1. If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations.)

d-2. If no new debt was issued during the year, what is the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

Answer 1

Income Statement
Particular	Amount
Sales	33510
Cost of Good Sold	23820
Operating Profit	9690
Depreciation Exp	5917
EBIT	3773
Interest Expenses	2670
EBT	1103
Tax @ 24%	264.72
EAT	838.28
Dividend Paid	1924

a company's net income is $ 838.28

b. operating cash flow for 2019 is = net income + depreciation

= 838.28 + 5917

= $ 6755.28

Balance Sheet

Liabilities	Beginning	Ending	Assents	Beginning	Ending
Share capital	22914	28465	Net fixed assets	19860	24430
Current Liabilities	3944	4601	Current Assets	6998	8636
Total	26858	33066	Total	26858	33066

c. Cash flow from assets = Previous year total assets - Current years Total Assets

= 26858 - 33066

= - 6208

So there is outflow in cash from assets.

d. The cash flow to creditor is interest expenses given in income statement. i.e. $ 2670

e. if no any shares were issued the outflow to shareholder is the total dividend given in income statement. i.e $ 1924