Determining the cash flow to stockholders


Dahlia Industries had the following operating results for 2009: sales = $22,800; cost of goods sold = $16,050; depreciation expense = $4,050; interest expense = $1,830; dividends paid = $1,300. At the beginning of the year, net fixed assets were $13,650, current assets were $4,800, and current liabilities were $2,700. At the end of the year, net fixed assets were $16,800, current assets were $5,930, and current liabilities were $3,150. The tax rate for 2009 was 34 percent. (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole dollar amount. (e.g., 32))

a. Net income for 2009 is $.

b. The operating cash flow for 2009 is $.

c. The cash flow from assets for 2009 is $. Is this possible? .

d. If no new debt was issued during the year, the cash flow to creditors is $ and the cash flow to stockholders is $.Interpret and explain the positive and negative signs of your answers in a) and d)

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Finance Basics: Determining the cash flow to stockholders
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