How do determine what is the cash flow to creditors

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Reference no: EM132719768

Ford Motors Inc had the following operating results for 2019 :

sales $29,580;

cost of goods sold = $19,610;

depreciation expense = $5,140;

interest expense = $2,490;

dividends paid = $1,300.

At the beginning of the year, net assets were $17,030, current assets were $5,830, and current liabilities were $3,400. At the end of the year, net fixed assets were $20,510, current assets were $7,604, and current liabilities were $3,950. The tax rate for 2019 was 30 percent.

Problem a) What is net income for 2019?

Problem b) What is the operating cash flow for 2019?

Problem c) What is the cash flow from assets for 2019? Is this possible? Explain.

Problem d) If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to shareholders?

Reference no: EM132719768

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