Income statement showed an interest expense

Assignment Help Financial Management
Reference no: EM13722974

Evans Co. showed long-term debt of $1.7M in 2005, and the December 31, 2006 balance sheet showed long-term debt of $1.9M. The 2006 income statement showed an interest expense of $650,000. What is the firm's cash flow to creditors in 2006?

The December 31, 2006 balance sheet showed $195,000 in the common account and $3.95M in the additional paid-in surplus account. If the company paid out $80,000 in cash dividends during 2006, what was the cash flow to stockholders for the year?

Given the information above, suppose you also know that the firm's net capital spending for 2006 was $760,000, and the firm increased its net working capital investment by $135,000. What was the firm's 2006 operating cash flow?

Reference no: EM13722974

Questions Cloud

Prepare a presentation comparing of software packages : Create a 7- to 10-slide presentation comparing and contrasting two major off-the-shelf software packages that could be implemented in an organization. Identify which functionality would be likely to be used as-is, and highlight what may need to be..
Find the outstanding balance at the end of the first year : A loan of 100,000 has payments at the end of each month for 12 years. For the first 6 years the payments are Z each month, and for the final 6 years the payments are 2Z each month. Interest is at a nominal annual rate of 12% compounded monthly. Find ..
Explain children in foster care of child welfare of today : You will write a 6-8 page paper according to APA Style formatting, researching an area of child welfare of today. Attachment Disorder, Family Systems and Children in Foster Care
Real world of human resource management : What things will you be able to take away that you believe will help you as a practitioner in the real world of Human Resource Management?
Income statement showed an interest expense : Evans Co. showed long-term debt of $1.7M in 2005, and the December 31, 2006 balance sheet showed long-term debt of $1.9M. The 2006 income statement showed an interest expense of $650,000. What is the firm's cash flow to creditors in 2006?
Ethical practices affect a firms ability to develop brand : Do ethical practices affect a firm's ability to develop brand as a source of competitive advantage? If so, how does this happen
What is the distinction between forecasting and planning : What is the role and benefit of technology in Supply Chain Management. Also discuss the process for E-Procurement. What is the distinction between forecasting and Planning.
Discrimination in promotion and hiring : When looking to fill positions, whether a promoion or new hire, employers must make sure that they properly list the qualifications and requirements of the job so that the candidate can provide to the employer how they are qualified for the positi..
Developing a risk management plan and risk identification : What risk identification process has been undertaken and any categories used to assist in the identification or relevant risks

Reviews

Write a Review

Financial Management Questions & Answers

  Use of financial data in strategic decision-making

Assessing the Use of Financial Data in Strategic Decision-Making - Post an explanation of the tools that you believe would help you to reach a decision - Post an explanation of the tools that you believe would help you to reach a decision.

  Restructuring of operations a solution to operating exposure

Is restructuring of operations a solution to operating exposure-Operating exposure measures any changes in the present value of a firm resulting from changes in future operating cash flows caused by any unexpected change in exchange rates.

  Discuss the following topic should the reduced tax rate on

discuss the following topic should the reduced tax rate on dividends affect a multinational firms capital structure?a

  Criticism that a proposed it architecture

How would you respond to the criticism that a proposed IT architecture is not feasible based on today's technology?

  What is the current value of the annuity

A five-year annuity of ten $8,000 semi annual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity 5 years from now? What is th..

  Stock valuation and revenue recognition

The validity of the Financial Director's proposed treatment of stock valuation and revenue recognition, referring to relevant International Accounting Standards as appropriate.

  Determine the relationship of each bud­ get line to volume

Explain how each amount in the flexible budget was calculated. (Hint Examine the static budget to determine the relationship of each bud­ get line to volume.)

  Discuss the benefits to an mnc of accepting the global

discuss the benefits to an mnc of accepting the global market concept.explain three points that define a global

  What is the share dividend

The Sharpe Co. just paid a dividend of $2.05 per share of stock. Its target payout ratio is 40 percent. The company expects to have earnings per share of $6.20 one year from now. If the adjustment rate is .3 as defend in the Lintner model, what is th..

  Explain a trend assesment of the company financial statement

Want to compare my stats with a financial professional. Draft a trend assesment of the company financial statements. (My company is Amgen, the biopharmaceutical company).

  Determine the number of units of product

Determine the number of units of product K to be manufactured in May and compute the May cash outlay for purchases of raw material A.

  Twin oaks health center has a bond issue outstanding with a

twin oaks health center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until

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