What was the firm cash flow from operations

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Question - FINANCIAL STATEMENTS AND FREE CASH FLOWS FOR BEDROCK GRAVEL - CORP. Bedrock Gravel Corp. shows the following information on its 2017 Income Statement (all numbers in $1,000s):

Sales: $145,000

Costs (excl. Depreciation): $86,000

Other expenses: $4,900

Depreciation: $7,000

Interest expense: $15,000

Taxes: $12,840

Dividends: $8,700

In addition, we know that the firm issued $6,450,000 in new equity during 2017 and redeemed $6,500,000 in outstanding long-term debt. With this information, answer the following questions. (i) Determine the firm's Cash Flow to Debt holders and Cash Flow to Equity holders for the year 2017. Based on these calculations what was the firm's Free Cash Flow for the year 2017? Motivate your approach and show your calculations. (ii) If we assume that the firm's net fixed assets increased by $5,000 during the year 2017, what was the firm's Cash Flow from Operations in 2017 and what was the change in the firm's operating Net Working Capital? Show your calculations.

Reference no: EM132929549

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