Reference no: EM132946379

Nanticoke Industries had the following operating results for 2018: sales $22,800; cost of goods sold = $16,050; depreciation expense = $4,050; interest expense = $1,830; dividends paid = $1,300. At the beginning of the year, net assets were $13,650, current assets were $4,800, and current liabilities were $2,700. At the end of the year, net fixed assets were $16,800, current assets were $5,930, and current liabilities were $3,150. The tax rate for 2018 was 34%.

Problem 1: What is net income for 2018? What is the operating cash flow for 2018?

Problem 2: What is the cash flow from assets for 2018? Is this possible? Explain.

Problem 3: If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to shareholders?