You start a new business after you graduate after its firm


Question: 1. You start a new business after you graduate. After its firm year in business, your firm paid out $1,000 in dividends, and paid $500 in taxes (of various kinds). Retained earnings increased by $175. What was your NetIncome for the first year?

2. The following year, your company had net income of $75,000 and distributed 80% of that to its sole shareholder (you). You also sold and issued $100,000 worth of common stock that same year. What is thecash flow to stockholders for that year?

3. Net change on working capital is $2,550.

Net capital spending is $500.

EBIT is $1,110.

Depreciation is $575

Taxes are $400.

Find Operating Cash Flow.

4. Operating cash flow is $750,000.

Net capital spending is $200,000.

Net increase in working capital is $55,000.

Net income is $125,000.

Cash flow to stockholders is $300,000.

Cash flow to creditors is $195,000.

What is Cash Flow from Assets (CFFA)?

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Finance Basics: You start a new business after you graduate after its firm
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