Finance

Titan Football Manufacturing had the following operating results for 2014: sales = $19,910; cost of goods sold = $13,850; depreciation expense = $2,240; interest expense = $280; dividends paid = $680. At the beginning of the year, net fixed assets were $20,300, current assets were $3,070, and current liabilities were $1,940. At the end of the year, net fixed assets were $24,140, current assets were $3,540, and current liabilities were $2,030. The tax rate for 2014 was 40 percent. (Enter your answers as directed, but do not round intermediate calculations.)

Requirement 1:

What is net income for 2014? (Round your answer to the nearest whole dollar amount (e.g., 32).)

  Net income

 $   

Requirement 2:

What is the operating cash flow during 2014? (Round your answer to the nearest whole dollar amount (e.g., 32).)

  Operating cash flow

 $   

Requirement 3:

What is the cash flow from assets during 2014? (Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar amount (e.g., 32).)

  Cash flow from assets

 $   

Requirement 4:

Assume no new debt was issued during the year.

(a)

What is the cash flow to creditors during 2014? (Round your answer to the nearest whole dollar amount (e.g., 32).)

  Cash flow to creditors

$   

(b)

What is the cash flow to stockholders during 2014? (Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar amount (e.g., 32).)

  Cash flow to stockholders

 $   

2014 Income Statement

  Sales

$

567,200  

  Costs of goods sold

274,005  

  Selling & administrative

124,729  

  Depreciation

54,572  

  EBIT

$

113,894  

  Interest

19,384  

  EBT

$

94,510  

  Taxes

37,804  

  Net income

$

  56,706  

  Dividends

$

10,000  

  Addition to retained earnings

$

46,706  

GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2013

  Cash

$

13,360 

   Accounts payable

$

9,500  

  Accounts receivable

18,990 

   Notes payable

14,504  

  Inventory

13,798 

   Current liabilities

$

24,004  

  Current assets

$

46,148 

   Long-term debt

$

136,480  

  Net fixed assets

$

344,546 

   Owner's equity

$

 230,210  

     Total assets

$

390,694 

      Total liabilities and owners’ equity

$

390,694  

GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2014

  Cash

$

14,346  

  Accounts payable

$

10,516  

  Accounts receivable

21,095  

  Notes payable

16,470  

  Inventory

22,758  

  Current liabilities

$

26,986  

  Current assets

$

58,199  

  Long-term debt

$

152,400  

  Net fixed assets

$

406,307  

  Owner's equity

$

285,120  

     Total assets

$

464,506  

     Total liabilities and owners’ equity

$

464,506  

Requirement 1:

Calculate the operating cash flow.

  Operating cash flow

 $   

Requirement 2:

Calculate the change in net working capital.

  Change in net working capital

 $   

Requirement 3:

Calculate the net capital spending.

  Net capital spending

 $   

Requirement 4:

Calculate the cash flow from assets. (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign.)

  Cash flow from assets

 $   

Requirement 5:

Calculate the cash flow to creditors.

  Cash flow to creditors

 $   

Requirement 6:

Calculate the cash flow to stockholders. (Negative amount should be indicated by a minus sign.)

  Cash flow to stockholders

 $   

You are given the following information for Sookie’s Cookies Co.: sales = $52,600; costs = $38,200; addition to retained earnings = $2,460; dividends paid = $1,005; interest expense = $1,420; tax rate = 40 percent.(Enter your answer as directed, but do not round intermediate calculations.)

Required:

Calculate the depreciation expense.

  Depreciation expense

 $   

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,375,000, $135,000 in the common stock account and $2,600,000 in the additional paid-in surplus account. The December 31, 2014, balance sheet showed long-term debt of $1,530,000, $145,000 in the common stock account and $2,900,000 in the additional paid-in surplus account. The 2014 income statement showed an interest expense of $91,500 and the company paid out $140,000 in cash dividends during 2014. The firm’s net capital spending for 2010 was $910,000, and the firm reduced its net working capital investment by $120,000. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

What was the cash flow to creditors during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

  Cash flow to creditors

$   

Required:

What was the firm’s cash flow to stockholders during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

  Cash flow to stockholders

$   

Required:

What was the firm’s cash flow from assets during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

  Cash flow from assets

$   

Required:

What was the firm’s operating cash flow during 2014? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

  Operating cash flow

$   

During the year, Belyk Paving Co. had sales of $2,388,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,437,000, $436,200, and $491,200, respectively. In addition, the company had an interest expense of $216,200 and a tax rate of 35 percent (ignore any tax loss carryback or carryforward provisions.). Belyk Paving Co. paid out $387,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

Calculate the firm's new long-term debt added during the year.

  Long-term debt

$   

Draiman, Inc., has sales of $589,000, costs of $269,000, depreciation expense of $69,000, interest expense of $36,000, and a tax rate of 35 percent. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

What is the net income for this firm?

  Net income

$   

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.1 million. The machinery can be sold to the Romulans today for $7.3 million. Klingon’s current balance sheet shows net fixed assets of $3.9 million, current liabilities of $820,000, and net working capital of $141,000. If all the current assets were liquidated today, the company would receive $935,000 cash. (Enter your answer as directed, but do not round intermediate calculations.)

Requirement 1:

What is the book value of Klingon’s total assets today? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

  Total asset book value

$   

Requirement 2:

What is the market value of Klingon's total assets? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

  Total asset market value

$