Answer:
The cash flow from assets for the year is $3,522
Explanation:
Computation of the cash flow from assets for 2019 is shown below:
= Operating cash flow - net capital spending - changes in working capital
where,
Operating cash flow = EBIT + depreciation - income tax expense
The EBIT = Sales - cost - depreciation expense
= $12,991 - $5,843 - $1,034
= $6,114
And, the income tax expense = (EBIT - Interest) × tax rate
= ($6,114 - $146) × 32%
= $1,909.76
So, the operating cash flow = $6,114 + $1,034 - $1,909.76
= $5,238.24
Net capital capital = ending fixed assets - beginning fixed assets + depreciation
= $4,297 - $3,712 + $1,034
= $1,619
Changes in working capital = (ending balance of current assets - ending balance of current liabilities) - (beginning balance of current assets - beginning balance of current liabilities)
= ($946 - $493) - ($931 - $375)
= $453 - $356
= $97
Now put these values to the above formula
So, the value would equal to
= $5,238.24 - $1,619 - $97
= $3,522
