Cash flows and net working capital


Problem: Schwert Corp. shows the following information on its 2010 income statement: sales = $150,600; costs = $88,000; other expenses = $4,600; depreciation expense = $8,000; interest expense = $19,000; taxes = $8,990; dividends = $10,125. In addition, you're told that the firm issued $6,250 in new equity during 2010 and redeemed $6,400 in outstanding long-term debt.

1) The 2010 operating cash flow is $49010.

2) The 2010 cash flow to creditors is $25400.

3) The 2010 cash flow to stockholders is $3875.

4) If net fixed assets increased by $5,100 during the year, the addition to NWC is $?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Cash flows and net working capital
Reference No:- TGS02042501

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)