What is the cash flow to stockholders and creditors

Assignment Help Financial Management
Reference no: EM131445288

Titan Football Manufacturing had the following operating results for 2016:

sales = $19,840; cost of goods sold = $13,920; depreciation expense = $2,310; interest expense = $315; dividends paid = $610. At the beginning of the year, net fixed assets were $16,800, current assets were $3,000, and current liabilities were $2,010. At the end of the year, net fixed assets were $19,940, current assets were $3,400, and current liabilities were $2,100. The tax rate for 2016 was 40 percent.

a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Net income $ ?

b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Operating cash flow $?

c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow from assets $?

Assume no new debt was issued during the year.

d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to creditors $ ?

e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Cash flow to stockholders?

Reference no: EM131445288

Questions Cloud

About how to approach the financing decision : This week we learn about how to approach the financing decision. Find an article that discusses project financing and share with the class! Also share your thoughts and takeaways from the article.
Current trend of companies restating financial statements : Evaluate the current trend of companies restating financial statements. Indicate the key drivers of this trend. Predict the trend over the next five years, providing support for your rationale.
Assess the impact to public trust when publically traded : Assess the impact to public trust when a publically traded company restates its financial data, indicating how negative impressions may be minimized. Provide support for your rationale.
Additional paid-in surplus account : The December 31, 2015, balance sheet of Schism, Inc., showed $148,000 in the common stock account and $2,730,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed $158,000 and $3,030,000 in the same two accounts, ..
What is the cash flow to stockholders and creditors : Titan Football Manufacturing had the following operating results for 2016: What is the operating cash flow for 2016? What is the cash flow to creditors for 2016? What is the cash flow to stockholders for 2016?
What interest rate would need to be earned : A couple currently has $5,000 in their retirement account. What interest rate would need to be earned in order to accumulate a total of $320,243.29 in 50 years, by adding $149.42 annually?
Bond is the interest rate you earn on your investment : The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). Two years from now, the YTM on your b..
The dividend is not expected to change in the future : A preferred stock selling for $116 with an annual dividend payment of $12. The flotation cost will be $6 per share. The? company's marginal tax rate is 30 percent. Retained earnings totaling $4.8 million. The price of the common stock is $67 per? sha..
Should we expand our product portfolio : Gemini Case Study : Should we expand internationally? Should we expand our product portfolio? If we do expand our product portfolio, by how much (In other words, should we offer lots of new products, or stick with our core competencies by making impr..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Oxygen optimization stock has an expected return

Oxygen Optimization stock has an expected return of 14.49 percent and pays annual dividends that are expected to grow at a constant rate forever. The firm’s next dividend is expected in 1 year from today and is expected to be 24.12 dollars. If the fi..

  Set of data containing historical prices and dividends

You have just come across a set of data containing historical prices and dividends that will allow you to calculate stock returns all the way back to 1880. Give at least one advantage and one disadvantage of using this data set to estimate U.S. stock..

  What is your net profit on the option

You have purchased a put option on Pfizer common stock. The option has an exercise price of $51 and Pfizer’s stock currently trades at $53. The option premium is $0.60 per contract. What is your net profit on the option if Pfizer’s stock price does n..

  What is the crossover rate for these two projects

Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 –$ 20,500 –$ 20,500 1 8,975 10,350 2 9,350 7,925 3 8,925 8,825 Calculate the IRR for each project. What is the crossover rate for these two projects?

  Imply about the inflation differential

Mexican interest rates are normally substantially higher than U.S. interest rates.  What does this imply about the inflation differential (Mexico inflation minus U.S. inflation), assuming that the peso interest rate is the same in both countries? Doe..

  Calculate the average return per period for an investor

Calculate the average return per period for an investor who bought 100 shares of the Closed Fund at the initiation and then sold her position at the end of Period 4.

  Calculate mean and standard deviation of the distribution

What is the probability distribution for the stock price in 2 years? - Calculate the mean and standard deviation of the distribution. Determine the 95% confidence interval.

  Present value of investment that has three cash flows

What is the present value of an investment that has three cash flows of -$3000, $4,000, and $6,000? These cash flows occur at the end of year 1, 2, and 3 respectively. Use a discount rate (required rate of return) of 13.5%.

  Exclusive projects is different reinvestment rate assumption

The underlying cause of the NPV versus IRR conflicts on mutually exclusive projects is different reinvestment rate assumptions. The NPV method assumes that cash flows will be reinvested at the cost of capital while the IRR method assumes reinvestment..

  Explain how nike can conduct multinational capital budgeting

Why will the initial outlay be different? Explain how Nike can conduct multinational capital budgeting in a manner that will achieve its objective.

  Hypothetical stock is expected to pay a dividend

A hypothetical stock is expected to pay a dividend of $12 per share in two months, in six months and in ten months. The stock price is $600, and the risk-free rate of interest is 0.55% per annum with continuous compounding for all maturities.

  What was total dollar return on this stock

Arnell Johnson bought 250 shares of Black Petroleum Company for $95 per share. He paid a commission of $55 when he purchased this stock. He sold the stock 5 years later for $115 per share. When he sold it he paid a commission of $70. While he held th..

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