2015 5831 3670 291 125 250 Sales Cost of goods sold Interes

2015 5831 3670 291 125 250 Sales Cost of goods sold | Interest Depreciation Cash Accounts Receivables Liabilities Current |Inventory Longtem debt Net fixed assets Common stock Taxes 2016 6423 4109 280 122 313 1162 1051 1521 1100 4123 2100 670 1092 717 1495 2400 4006 1900 590 What is the change in networking capital from 2015 to 2016? What is the net capital spending for 2016? What is the operating cash flow for 2016? d. What is the cash flow from assets for 2016? What is the cash flow to creditors for 2016? f. What is the cash flow to stockholders for 2016?

Solution

Answer a.

2015:

Current Assets = Cash + Accounts Receivable + Inventory
Current Assets = 250 + 1092 + 1495
Current Assets = 2837

Current Liabilities = 717

Working Capital = Current Assets - Current Liabilities
Working Capital = 2837 - 717
Working Capital = 2120

2016:

Current Assets = Cash + Accounts Receivable + Inventory
Current Assets = 313 + 1162 + 1521
Current Assets = 2996

Current Liabilities = 1051

Working Capital = Current Assets - Current Liabilities
Working Capital = 2996 - 1051
Working Capital = 1945

Change in Net Working Capital = Working Capital, 2016 - Working Capital, 2015
Change in Net Working Capital = 1945 - 2120
Change in Net Working Capital = -175

Answer b.

Net Capital Spending = Net Fixed Assets, 2016 + Depreciation, 2016 - Net Fixed Assets, 2015
Net Capital Spending = 4123 + 122 - 4006
Net Capital Spending = 239

Answer c.

2016:

EBIT = Sales - Cost of Goods Sold - Depreciation
EBIT = 6423 - 4109 - 122
EBIT = 2192

Operating Cash Flow = EBIT + Depreciation - Taxes
Operating Cash Flow = 2192 + 122 - 670
Operating Cash Flow = 1644

Answer d.

Cash Flow from Assets = Operating Cash Flow - Change in Net Working Capital - Net Capital Spending
Cash Flow from Assets = 1644 - (-175) - 239
Cash Flow from Assets = 1580

Answer e.

Net New Long-term Debt = Long-term Debt, 2016 - Long-term Debt, 2015
Net New Long-term Debt = 1100 - 2400
Net New Long-term Debt = -1300

Cash Flow to Creditor = Interest - Net New Long-term Debt
Cash Flow to Creditor = 280 - (-1300)
Cash Flow to Creditor = 1580

Answer f.

Cash Flow to Stockholders = Cash Flow from Assets - Cash Flow to Creditor
Cash Flow to Stockholders = 1580 - 1580
Cash Flow to Stockholders = 0