Question

Jetson Spacecraft Corp. shows the following information on its 2009 income statement: sales = $201,000; costs = $97,000; other expenses = $5,900; depreciation expense = $8,900; interest expense = $12,800; taxes = $22,920; dividends = $9,400. In addition, you're told that the firm issued $7,200 in new equity during 2009 and redeemed $8,800 in outstanding long-term debt.
(a) What is the 2009 operating cash flow?
(b) What is the 2009 cash flow to creditors?
(c) What is the 2009 cash flow to stockholders?

Answer 1

Answer:

A) cash flow from operating activities: 75,810

The company generate 785,810 cash.

B)total cash flow to creditors: 21,600

the company used cash for 21,600 to pay his creditors

C) cash flow to stockholders 2,200

the company used 2,200 cash to pay his stockholders

Explanation:

operating activities (assuming everything is in cash)

sales 201,000

COGS (97,000)

other    (5,900)

taxes  (22,920)

cash flwo from operating activities: 75,810

cash flow to creditors:

8,800 installment

12,800 interest

total cash outflow to creditors: 21,600

stockholerds:

dividends 9,400

issued      (7,200)

total           2,200

cash outflow to stockholders 2,200