zacharie101
Sep 10, 2012, 07:55 PM
Can you please check if I did the homework the right way. I have to create a statement of cash flow with the info below. I put my results from both questions at the bottom for you to grade.
Prepare a FCF statement from
The data below and then determine how the
Company uses FCF and/or finances its
Operations (FCF must equal its uses/needs).
Interest expense $276,000
Issuance of long-term debt $640,000
EBIT $1,020,000
Depreciation $125,000
Issuance of common stock $348,000
Taxes $290,000
Increase in current assets (ignore cash) $640,000
Increase in current liabilities (ignore s.t. debt) $201,000
Dividends paid $64,000
Purchase of buildings & equipment $1,064,000
Problem #2- Same requirement as Prob #1
Dividends paid $1,341,000
Interest expense $364,000
Taxes $320,000
Repayment of long-term debt $850,000
EBIT $954,000
Depreciation $60,000
Repurchase of common stock $1,024,000
Sale of buildings & equipment $2,161,000
Decrease in current assets (ignore cash) $899,000
Decrease in current liabilites (ignore s.t. debt) $175,000
Here is what I got for part 1
Cash Flows from Operations
Depreciation Expense 125,000
Change in Accounts Receivable 640,000
Change in Other Current Liabilities (Accured Expense) 201,000
Total Cash Flows from Operations 966,000
Cash Flows from Investing
Change in Plant & Equipment 1,064,000
Total Cash Flows from Investing 1064000
Cash Flows from Financing
Change in Long-term Debt 640,000
Common Stock 348,000
Cash Dividends Paid to Shareholders 64,000
Total Cash Flows from Financing 1052000
Net Change in Cash Balance 3,082,000
Here is what I got for part 2
Cash Flows from Operations
Depreciation Expense 60,000
Change in Accounts Receivable -899,000
Change in Other Current Liabilities (Accured Expense) -175,000
Total Cash Flows from Operations -1,014,000
Cash Flows from Investing
Change in Plant & Equipment 2,161,000
Total Cash Flows from Investing 2161000
Cash Flows from Financing
Change in Long-term Debt 850,000
Common Stock 1,024,000
Cash Dividends Paid to Shareholders 1,314,000
Total Cash Flows from Financing 3188000
Net Change in Cash Balance 4,335,000
Prepare a FCF statement from
The data below and then determine how the
Company uses FCF and/or finances its
Operations (FCF must equal its uses/needs).
Interest expense $276,000
Issuance of long-term debt $640,000
EBIT $1,020,000
Depreciation $125,000
Issuance of common stock $348,000
Taxes $290,000
Increase in current assets (ignore cash) $640,000
Increase in current liabilities (ignore s.t. debt) $201,000
Dividends paid $64,000
Purchase of buildings & equipment $1,064,000
Problem #2- Same requirement as Prob #1
Dividends paid $1,341,000
Interest expense $364,000
Taxes $320,000
Repayment of long-term debt $850,000
EBIT $954,000
Depreciation $60,000
Repurchase of common stock $1,024,000
Sale of buildings & equipment $2,161,000
Decrease in current assets (ignore cash) $899,000
Decrease in current liabilites (ignore s.t. debt) $175,000
Here is what I got for part 1
Cash Flows from Operations
Depreciation Expense 125,000
Change in Accounts Receivable 640,000
Change in Other Current Liabilities (Accured Expense) 201,000
Total Cash Flows from Operations 966,000
Cash Flows from Investing
Change in Plant & Equipment 1,064,000
Total Cash Flows from Investing 1064000
Cash Flows from Financing
Change in Long-term Debt 640,000
Common Stock 348,000
Cash Dividends Paid to Shareholders 64,000
Total Cash Flows from Financing 1052000
Net Change in Cash Balance 3,082,000
Here is what I got for part 2
Cash Flows from Operations
Depreciation Expense 60,000
Change in Accounts Receivable -899,000
Change in Other Current Liabilities (Accured Expense) -175,000
Total Cash Flows from Operations -1,014,000
Cash Flows from Investing
Change in Plant & Equipment 2,161,000
Total Cash Flows from Investing 2161000
Cash Flows from Financing
Change in Long-term Debt 850,000
Common Stock 1,024,000
Cash Dividends Paid to Shareholders 1,314,000
Total Cash Flows from Financing 3188000
Net Change in Cash Balance 4,335,000