FIN 300 Study Guide - Final Guide: Dividend Yield, Xionites, Real Estate Investment Trust
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Graffiti Advertising, Inc., reported the following financialstatements for the last two years.
2016 Income Statement | |||
Sales | $ | 567,200 | |
Costs of goods sold | 274,005 | ||
Selling and administrative | 124,729 | ||
Depreciation | 54,572 | ||
EBIT | $ | 113,894 | |
Interest | 19,384 | ||
EBT | $ | 94,510 | |
Taxes | 37,804 | ||
Net income | $ | 56,706 | |
Dividends | $ | 10,000 | |
Addition to retained earnings | $ | 46,706 | |
GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 | |||||||
Cash | $ | 13,360 | Accounts payable | $ | 9,500 | ||
Accounts receivable | 18,990 | Notes payable | 14,504 | ||||
Inventory | 13,798 | Current liabilities | $ | 24,004 | |||
Current assets | $ | 46,148 | |||||
Long-term debt | $ | 136,480 | |||||
Net fixed assets | $ | 344,546 | Owner's equity | $ | 230,210 | ||
Total assets | $ | 390,694 | Total liabilities and ownersΓ’ΒΒ equity | $ | 390,694 | ||
GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 | |||||||
Cash | $ | 14,346 | Accounts payable | $ | 10,516 | ||
Accounts receivable | 21,095 | Notes payable | 16,470 | ||||
Inventory | 22,758 | Current liabilities | $ | 26,986 | |||
Current assets | $ | 58,199 | |||||
Long-term debt | $ | 152,400 | |||||
Net fixed assets | $ | 406,307 | Owner's equity | $ | 285,120 | ||
Total assets | $ | 464,506 | Total liabilities and ownersΓ’ΒΒ equity | $ | 464,506 | ||
a. Calculate the operating cash flow.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Operating cash flow $
b. Calculate the change in net working capital.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Change in net working capital $
c. Calculate the net capital spending. (Donot round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)
Net capital spending $
d. Calculate the cash flow from assets. (Anegative answer should be indicated by a minus sign. Do not roundintermediate calculations and round your answer to the nearestwhole number, e.g., 32.)
Cash flow from assets $
e. Calculate the cash flow to creditors.(Do not round intermediate calculations and round youranswer to the nearest whole number, e.g., 32.)
Cash flow to creditors $
f. Calculate the cash flow to stockholders.(A negative answer should be indicated by a minus sign. Donot round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)
Cash flow to stockholders $