Calculate the cash flow to creditors

Assignment Help Financial Management
Reference no: EM131010591

Barney Corporation 2013 financial statements showed the following: sales -100000, cost of goods- 48500, other expences-15800, depreceiation expense-8000, interest expense - 12660, taxes - 5300, dividends - 12000, 2013new equity - 6000, net new long term debt - 25000, change in fixed assets - 12000.

a. Calculate the operating cash flow for the firm.

b. Calculate the cash flow to creditors.

c. Calculate the cash flow to stockholders.

d. If the net fixed assets increased by $12 ,000 during the year, what was the change to Net Working Capital NWC ?

Reference no: EM131010591

Questions Cloud

While marginal and average tax rates often differ : While marginal and average tax rates often differ, it is the marginal tax rate that is relevant for most financial decisions. Book value is an accounting summary of value and is inferior to market value as a source of current information regarding th..
A risk management action plan to prevent issues : The decedent/plaintiff was a 67 year old male who underwent a right total knee replacement. Following the procedure, the plaintiff was treated in the post-anesthesia care unit where an epidural catheter was inserted for postoperative pain managem..
What was the companys change in net working capital : 2013 balance sheet showed Current assets of $68,000 and Current Liabilities of $59,000. The 2014, balance sheet shows Current assets of $54,000 and Current Liabilities of $65,000. What was the company’s change in net working capital (NWC)?
Determine the balances of the factory overhead accounts for : Tiny Biggs Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine ..
Calculate the cash flow to creditors : Barney Corporation 2013 financial statements showed the following: sales -100000, cost of goods- 48500, other expences-15800, depreceiation expense-8000, interest expense - 12660, taxes - 5300, dividends - 12000, 2013new equity - 6000, net new long t..
What is the market value of their total assets : Adelle’s Phone Answering Service’s balance sheet lists net fixed asset as $24 million. The fixed assets could currently be sold for $18 million. Hoffa’s current balance sheet shows current liabilities of $9 million and net working capital of $5 milli..
What is the loans effective annual rate : You are looking to buy a car. You can afford $540 in monthly payments for four years. In addition to the loan, you can make a $1,900 down payment. If interest rates are 9.25 percent APR, what price of car can you afford? A loan is offered with monthl..
Vermont civil union and the massachusetts marriage : Read carefully the case, Elia-Warnken v. Elia. In regards to the Vermont civil union and the Massachusetts marriage, what was the issue before the court and how did they rule on this? Do you agree or disagree with the court’s opinion. State reasons f..
How long will it take him to pay off the debt : Joey realizes that he has charged too much on his credit card and has racked up $3,900 in debt. If he can pay $175 each month and the card charges 16 percent APR (compounded monthly), how long will it take him to pay off the debt? (Do not round inter..

Reviews

Write a Review

Financial Management Questions & Answers

  Dividends are expected to grow rate

Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent and the company just paid a divi..

  Assume that the bank pays me an interest rate

Uncle Tim gave me $100 today for my birthday. He also promised to give me another $100 each for my next two birthdays. If I deposit all the money I receive from my uncle Tim on the day it is given to me at 5% how much will I have at the end of three ..

  Capital structure features

Suppose that MNINK Industries’ capital structure features 63 percent equity, 7 percent preferred stock, and 30 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 11.60 percent, 9.50 percent, and 9.00 percent,..

  Growth rate of share of common stocks dividends

If the expected constant growth rate of a share of common stock's dividends and per share price decreases, then according to the discounted cash flow approach to valuation, the price of the stock should:

  Calculating the depreciable basis for real property

Which of the following is NOT included when calculating the depreciable basis for real property?

  Bond provide yield to maturity

A zero-coupon bond with a par value of $2,000 matures in 10 years. At what price would this bond provide a yield to maturity that matches the current market rate of 8 percent?

  Using end of month balances and part of monthly payments

A jewellery store manager wants to offer credit to her customers. Interest charges will be determined using end of month balances and part of monthly payments. A bank will lend the manager at 6 percent compounded monthly. To offset overhead, the mana..

  Firm evaluates all of projects by applying NPV decision rule

A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 27,700 1 11,700 2 14,700 3 10,700 what is the NPV for the project if the required return is 12 per..

  What is cash insolvency analysis

What is cash insolvency analysis, and how can it help in the establishment of an optimal capital structure? What are the major limitations of EBIT-EPS analysis as a technique to determine the optimal capital structure?

  Considering a property-what is present value of investment

You are considering a property that is leased for 4 years. As the lessor you would recieve the following cash flows (at the end of each year): $17,800 in Year 1, $19,000 in Year 2, $12,500 in Year 3, and $10,000 in Year 4. At the end of the period yo..

  Calculate the weighted cost of capital

Corporations often use different costs of capital for different operating divisions. Using an example, calculate the weighted cost of capital (WACC). What are some potential issues in using varying techniques for cost of capital for different divisio..

  Minimum cost cash balance according to the baumol model

Halliday Inc. receives a $2 million payment once a year. Of this amount, $700,000 is needed for cash payments made during the next year. If Halliday can hold marketable securities that yield 4%, and then convert these securities to cash at a cost of ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd