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Tcecarenko [31]
3 years ago
5

The Lakeside Inn had operating cash flow of $48,450. Depreciation was $6,700 and 15) interest paid was $2,480. A net total of $2

,620 was paid on long-term debt. The firm spent $24,000 on fixed assets and decrease net working capital by $1,330. What was the amount of the cash flow to stockholders?
Business
1 answer:
irina [24]3 years ago
3 0

Answer: the amount of the cash flow to stockholders is $20,680.

Explanation: operating cash flow of $48,450

Depreciation was $6,700

interest paid was $2,480

net total of $2,620 was paid on long-term debt

increased its net capital spending by $24,000

decreased net working capital by $1,330

We want to calculate the cash flow to stockholders. We can do that subtracting all non-cash items from operating cash flow and then subtracting net capital spending and adding the net changes in working capital.

Cash Flow from Assets = 48450 (Operating Cash Flow) - (-1330) - 24000 (Fixed Assets Expenditure) = 25780

Cash Flow to Creditors (Interest) = 2480 - (-2620) = 5100

Cash Flow to Stockholders = 25780 - 5100 = 20,680

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Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $30,5
DIA [1.3K]

Answer:

$38,500

Explanation:

Sheridan's ending cash balance can be calculated as;

= Beginning cash balance + cash provided by operating activities + cash provided by financing activities - cash used by investing activities

= $5,500 + $30,500 + $13,500 - $11,000

= $38,500

Therefore, the ending cash balance is $38,500

6 0
2 years ago
Colgate-Palmolive Company reports the following balances in its retained earnings.
Dafna11 [192]

Answer:

a. $1,028 million

b. 46.7%

Explanation:

a. Dividends are taken from the retained earnings and net income is added to the retained earnings. The formula for ending retained earnings is;

Ending retained earnings = Opening Retained earnings + Net Income - Dividends

14,329 = 13,157 + 2,200 - Dividends

Dividends = 13,157 + 2,200 - 14,329

Dividends = $1,028 million

b. Dividends as a percentage of income

= 1,028/2,200

= 0.467

= 46.7%

3 0
3 years ago
Incite Co. has a 30 percent tax rate. Its total interest payment for the year just ended was $43.4 million. What is the interest
inn [45]

Answer: $13,020,000

Explanation:

Given that,

Tax rate = 30%

Total interest payment for the year just ended = $43,400,000

Interest Tax Shield = Tax rate × Total interest payment

                               = 30% × $43,400,000

                               = 0.30 × $43,400,000

                               = $13,020,000

Therefore, the interest tax shield is $13,020,000.

7 0
3 years ago
The future value of​ $100 received today and deposited in an account for four years paying semiannual interest of 6 percent is​
jonny [76]
Formula: FV = PV(1+ r)^n

Fv is the future value, Pv is the present value, r is the interest rate, n is the number of periods.

FV = $100(1 + 0.06)^(6*2) = $201.22


4 0
2 years ago
On September 1, Joe's Painting Service borrows $150,000 from National Bank on a 4-month, $150,000, 6% note. What entry must Joe'
Agata [3.3K]

Answer:

Loan Account

DR  loan Note Account  with $150,000

DR Loan Interest Expenses with $3,000

CR   Cash/Bank Account with $153,000

Explanation:

the interest payable  on the loan as at Dec 31  =  $150,000 *6% *4/12 = $3,000

6 0
3 years ago
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