The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $3.1 million, and the 2018 balance sheet showed long-term debt of $3.2 million. The 2018 income statement showed an interest expense of $150,000. During 2018, the company had a cash flow to creditors of $50,000 and the cash flow to stockholders for the year was $90,000. Suppose you also know that the firm's net capital spending for 2018 was $1,340,000, and that the firm reduced its net working capital investment by $63,000. What was the firm's 2018 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Operating cash flow

The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $3.1 million, and the 2018 balance sheet showed long-term debt of $3.2 million. The 2018 income statement showed an interest expense of $150,000. During 2018, the company had a cash flow to creditors of $50,000 and the cash flow to stockholders for the year was $90,000. Suppose you also know that the firm's net capital spending for 2018 was $1,340,000, and that the firm reduced its net working capital investment by $63,000. What was the firm's 2018 operating cash flow, or OCF? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Operating cash flow

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...

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The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $3.05 million in long-term debt, $790,000 in the common stock account, and $6.05 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.8 million, $905,000, and $8.45 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $300,000. The company paid out $660,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $790,000, and the firm reduced its net working capital investment by $165,000, what was the firm's 2018 operating cash flow, or OCF? Multiple Choice O O $-2,305,000 $-3,000,000 $2,635,000 $-1,680,000 $-4,250,000
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The 2017 balance sheet of Kerber’s Tennis Shop, Incorporated, showed $2.8 million in long-term debt, $730,000 in the common stock account, and $6.2 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.4 million, $915,000, and $8.25 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $350,000. The company paid out $540,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $710,000, and the firm reduced its net working capital investment by $135,000, what was the firm's 2018 operating cash flow, or OCF?
The 2017 balance sheet of Kerber's Tennis Shop , Incorporated, showed $2.4 million long-term debt, $760,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.95 million $985,000, and $8.05 million in the same three accounts , respectively . The 2018 income statement showed an interest expense of $ 310,000 . The company paid out $590,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $690,000 , and the firm reduced its net working capital Investment by $185,000 , what was the firm's 2018 operating cash flow , or OCF ? Typed solution
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Square Hammer Corporation shows the following information on its 2018 income statement: Sales = $196,000; Costs = $84,000; Other expenses = $5,100; Depreciation expense = $9,000; Interest expense = $13,300; Taxes = $29,610; Dividends = $10,300. In addition, you're told that the firm issued $7,100 in new equity during 2018 and redeemed $8,700 in outstanding long-term debt. a. What is the 2018 operating cash flow? Operating cash flow b. What is the 2018 cash flow to creditors? Cash flow to creditors
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The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Merry International Incorporated for the 2024 fiscal year. The following additional information from an analysis of Merry's financial position is available: Current ratio = 1.352272; Acid - test ratio = 0.5769817; Debt to equity ratio = 0.6063000. Required: Compute the missing amounts in the balance sheet. Note: Enter your answers in millions of dollars. Round your intermediate and final answers to the nearest whole dollar. MERRY INTERNATIONAL INCORPORATED Balance Sheet At December 31, 2024 ($ in millions) Assets Current assets \table[[Cash and cash equivalents,,510]. [Accounts and notes receivable]. [Inventory], [Other,, 460], [Total current assets], [Property and equipment, net,1,322,], [Intangible assets, net]. [Investments, 260,], [Notes and other receivables, net,1,276,].[Other assets, 1, 152,]. [Total long-term assets], [Total assets]. [Liabilities and Shareholders' Equity],…
The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet: $ 50 Accounts payable Notes payable Cash $ 100 150 Accounts receivable 200 200 Accruals 50 Inventories 400 Net fixed assets 500 Long-term debt Common stock 100 Retained earnings 250 Total assets $1,000 Total liabilities and equity $1,000 Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 50 and its payout ratio to be 60%. What is Booth's additional funds needed (AFN) for the coming year?
At year-end 2018, Wallace Landscaping's total assets were $2.17 million, and its accounts payable were $470,000. Sales, which in 2018 were $2.2 million, are expected to increase by 30% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $505,000 in 2018, and retained earnings were $345,000. Wallace has arranged to sell $60,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 7%, and 45% of earnings will be paid out as dividends. a. What was Wallace's total long-term debt in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What…
Interest expense for Rhodes Manufacturing was $500,000 in 2018. During 2018, $3.7 million in old debt was repaid and $1.6 million was raised through new borrowing. Dividends of $460,000 were paid and $1.7 million was raised through new share sales. a. Calculate the cash flow to bondholders. Treat interest as a financing flow. (Enter answers in dollar, not in millions of dollar. Use minus sign to enter cash or financing outflows, if any.) Cash flow to bondholders
Interest expense for Rhodes Manufacturing was $500,000 in 2018. During 2018, $3.7 million in old debt was repaid and $1.6 million was raised through new borrowing. Dividends of $460,000 were paid and $1.7 million was raised through new share sales. a. Calculate the cash flow to bondholders. Treat interest as a financing flow. (Enter answers in dollar, not in millions of dollar. Use minus sign to enter cash or financing outflows, if any.)