MGF 405 Lecture 1: Homework 1 Solutions
6 Oct 2015
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= ,000 (* apis is the additional paid-in surplus (capital surplus)). Chap 02: cf(b) = interest net new borrowing (=ldt ldt-1 , cf(s) = dividends net new equity (= cs issued incl. = dividends [(cst + apist) (cst-1 + apist-1)] or. = dividends [(cst cst-1 ) + (apist apist-1)] = ,000 [(,000 - ,000 ) + (3,700,000 - 3,400,000): cf(a) = cf(b) + cf(s) We know that: cf(a) = ocf - ncs - dnwc: a. The interest expense for the company is the amount of debt times the interest rate on i. e. , -3,000 = ocf 945,000 (-87,000) Other info: ncst = 945,000, dnwct = -87,000. So, the income statement for the company is: $ 87,100: and the operating cash flow is: Ocf = ebit + depreciation current taxes. Additions to re: to find the ocf, we first calculate net income, cf(b) = interest new borrowing. = ,100: ocf = ebit + depreciation curr. = ,950: cf(s) = dividends new equity.
