FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Bedrock Gravel Corp. shows the following information on its 2007 income statement: sales
$162,000; costs = $93,000; other expenses = $5,100: depreciation expense = $8,400;
interest expense = $16,500; taxes = $14,820; dividends $9,400. In addition, you're told
that the firm issued $7,350 in new equity during 2007 and redeemed $6,400 in outstanding
long-term debt.
a. What is the 2007 operating cash flow?
b. What is the 2007 cash flow to creditors?
c. What is the 2007 cash flow to stockholders?
d. If net fixed assets increased by $12,000 during the year, what was the addition to
NWC?
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Transcribed Image Text:Bedrock Gravel Corp. shows the following information on its 2007 income statement: sales $162,000; costs = $93,000; other expenses = $5,100: depreciation expense = $8,400; interest expense = $16,500; taxes = $14,820; dividends $9,400. In addition, you're told that the firm issued $7,350 in new equity during 2007 and redeemed $6,400 in outstanding long-term debt. a. What is the 2007 operating cash flow? b. What is the 2007 cash flow to creditors? c. What is the 2007 cash flow to stockholders? d. If net fixed assets increased by $12,000 during the year, what was the addition to NWC?
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