During 2009, Raines Umbrella Corp. had sales of $746,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $578,000, $103,000, and $130,000, respectively. In addition, the company had an interest expense of $97,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $18,000 in cash dividends, spending on net fixed assets and net working capital was zero, and no new stock was issued during the year.What is the firm’s:______.
1- Cash Flow from Assets?
2- Cash Flow to Shareholders?
3- Cash Flow to Creditors?
4- Net new Long-term Debt?

Respuesta :

Answer:

1 $65,000

2 $18,000

3 $47,000

4 $50,000

Explanation:

1. Cash flow from Assets = $65,000

2. Cash flow to Shareholders = Dividend = $18,000

3. Cash flow to Creditors = $47,000

4. Net new long term debt = $50,000

Please find attached explanations to the answers above.

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