Reference no: EM131180483
Looking for a detailed explanation to the following questions, specifically question 1:
1) The 2011 balance sheet of Anna's Tennis Shop, Inc., showed long-term debt of $3.3 million, and the 2012 balance sheet showed long-term debt of $3.55 million. The 2012 income statement showed an interest expense of $155,000. The 2011 balance sheet of Anna's Tennis Shop, Inc., showed $490,000 in the common stock account and $2.2 million in the additional paid-in surplus account. The 2012 balance sheet showed $530,000 and $2.4 million in the same two accounts, respectively. The company paid out $400,000 in cash dividends during 2012. Suppose you also know that the firm's net capital spending for 2012 was $1,350,000, and that the firm reduced its net working capital investment by $65,000.
Q) What was the firm's 2012 operating cash flow, or OCF?
2) Schwert Corp. shows the following information on its 2012 income statement: sales = $394,000; costs = $300,000; other expenses = $7,900; depreciation expense = $19,500; interest expense = $13,400; taxes = $18,620; dividends = $10,500. In addition, you're told that the firm issued $4,900 in new equity during 2012 and redeemed $3,400 in outstanding long-term debt.
Q) What is the 2012 operating cash flow?
Q) What is the 2012 cash flow to creditors?
Q) What is the 2012 cash flow to stockholders?
Q) If net fixed assets increased by $25,000 during the year, what was the addition to net working capital (NWC)?