What was the addition to net working capital

Assignment Help Financial Management

Reference no: EM131556117

Lach, Inc, has an operating cash flow of $50,000, cash flow to creditors of $20,000, depreciation expense of $3,000, and cash flow to a stockholders of $10,000 during 2010. If net fixed assets increased by $15,000 during 2010, what was the addition to net working capital or NWC?

1) $13,000

2) $35,000

3) $5,000

4) $2,000

Reference no: EM131556117

Questions Cloud

Dependent on the covariance of security with the market : Beta values are highly dependent on the covariance of a security with the market. An indirect cost of bankruptcy is the loss of key employees.

What is sustainable growth rate : Assuming the following ratios are constant, what is the sustainable growth rate?

What is this project internal rate of return : If the firm has a marginal tax rate of 40 percent, what is this project’s internal rate of return?

How much would your investments be worth today : How much would your investments be worth today? What is your average return (IRR)?

What was the addition to net working capital : what was the addition to net working capital or NWC?

What is the premium for growth on the stock : what is the premium for growth on the stock?

What is sage target debt-equity ratio : The tax rate is 30 percent. What is Sage's target debt-equity ratio?

Dividend payment-what is the capital gains yield : The dividends are anticipated to maintain a 6 percent growth rate, forever. If the stock currently sells for $40.77 per share, what is the capital gains yield?

What are the annual incremental net cash flows : The depreciation of the new equipment will be $73,000 per year. What are the annual incremental net cash flows?

User Account

All Pages