1. Calculating cash flows For 2017, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders (assume a corporate tax rate of 34%.) (Unit: $ USD) 2. Calculating Cash...

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Calculating cash flows

For 2017, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders (assume a corporate tax rate of 34%.)

(Unit: $ USD)




1. Calculating cash flows For 2017, calculate the cash flow from assets, cash flow to creditors, and cash flow to shareholders (assume a corporate tax rate of 34%.) (Unit: $ USD) 2. Calculating Cash Flows Consider the following abbreviated financial statements for Berea Fireworks: (unit: £ GBP sterling) a. What is the owners’ equity for 2016 and 2017? b. What is the change in net working capital for 2017? c. In 2017, Berea Fireworks purchased £1,500 in new fixed assets. How much in fixed assets did Berea Fireworks sell? What is the cash flow from assets for the year? d. During 2017, Berea Fireworks raised £300 in new long-term debt. How much longterm debt must Berea Fireworks have paid off during the year? What is the cash flow to creditors? PUBLIC PUBLIC PUBLIC
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Answered Same DayNov 02, 2021

Answer To: 1. Calculating cash flows For 2017, calculate the cash flow from assets, cash flow to creditors, and...

Khushboo answered on Nov 02 2021
149 Votes
Solution 1:
Balance sheet and Income statement of the Entity:
     Particulars
    2016
    2017
    Cash
    2107
    2155
    Accounts receivable
    2789
    3142
    Inventory
    4959
    5096
    Net fixed assets
    17669
    18091
    Total assets
    27524
    28484
    Liabilities
     
     
    Short term notes payable
    407
    382
    Accounts payable
    2213
    2146
    Long term debt
    7056
    8232
    Total liabilities
    9676
    10760
    Owners equity
    17848
    17724
INCOME STATEMENT
     Particulars
    2016
    2017
    Sales
    4018
    4312
    Less: COGS
    1382
    1569
    Gross Profit
    2636
    2743
    Depreciation
    577
    578
    Other expenses
    328
    274
    Interest
    269
    309
    Profit before tax
    1462
    1582
    Tax @34%
    497
    538
    Net Income
    965
    1044
    Less: dividend
    488
    532
    Retained earning
    477
    512
Now,
Cash from assets = Cash flow to creditors + Cash flow to stockholders.
Calculation of cash flow to creditors:
     Particulars
    Amount 
    Interest paid
    309
    New borrowings (long term debt)
    -1176
    Total
    -867
Cash flow from assets = Operating cash flows – Capital Spending – Change Net working Capital
Calculation of cash flow from...
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