Compute the cash flow to creditors

Reference no: EM132067072

Question: Quarles Industries had the following operating results for 2015: sales = $29,220; cost of goods sold = $19,560; depreciation expense = $5,100; interest expense = $2,490; dividends paid = $1,250. At the beginning of the year, net fixed assets were $16,880, current assets were $5,820, and current liabilities were $3,360. At the end of the year, net fixed assets were $20,460, current assets were $7,360, and current liabilities were $3,940. The tax rate for 2015 was 30 percent.

a. What is net income for 2015? (Do not round intermediate calculations.) Net income= $

b. What is the operating cash flow for 2015? (Do not round intermediate calculations.) Operating cash flow= $

c. What is the cash flow from assets for 2015? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) Cash flow from assets= $

d-1 If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations.) Cash flow to creditors= $

d-2 If no new debt was issued during the year, what is the cash flow to stockholders? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) Cash flow to stockholders= $

Reference no: EM132067072

Questions Cloud

What derivatives are and how are they used to manage risk : Explain how the risk-free rate, market risk premium and stock beta are used to calculate expected returns using the capital asset pricing model (CAPM).

What is wce required rate of return : What is WCE's required rate of return? Round your answer to 2 decimal places. Do not round intermediate calculations.

Determine the variable costs per haircut : He employs 5 barbers and pays each a base rate of $1,510 per month. Determine the variable costs per haircut and the total monthly fixed costs

What current events might impact the markets : which markets are performing well? Which are highly volatile? What current events might impact the markets?

Compute the cash flow to creditors : If no new debt was issued during the year, what is the cash flow to creditors? (Do not round intermediate calculations.) Cash flow to creditors= $

How many years will it take to exhaust her funds : How many years will it take to exhaust her funds (i.e., run the account down to zero)?

Break-even point between option hedge and forward hedge : According to the following information, which rate is the break-even point between option hedge and forward hedge?

What is the carrying value of the bonds : The straight-line method of amortization is to be used. After seven years, what is the carrying value of the bonds

Due to increased mailing costs : Due to increased mailing costs, the new rate will cost publishers $62 million. How much did it cost publishers last year?

User Account

All Pages