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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Graffiti Advertising, Inc., reported the following financial statements for the last two years.
| 2016 Income Statement | |||
| Sales | $ | 565,200 | |
| Costs of goods sold | 274,025 | ||
| Selling and administrative | 124,733 | ||
| Depreciation | 54,576 | ||
| EBIT | $ | 111,866 | |
| Interest | 19,296 | ||
| EBT | $ | 92,570 | |
| Taxes | 48,137 | ||
| Net income | $ | 44,433 | |
| Dividends | $ | 9,600 | |
| Addition to retained earnings | $ | 34,833 | |
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2015 |
|||||||
| Cash | $ | 13,320 | Accounts payable | $ | 9,504 | ||
| Accounts receivable | 18,994 | Notes payable | 14,508 | ||||
| Inventory | 13,794 | Current liabilities | $ | 24,012 | |||
| Current assets | $ | 46,108 | |||||
| Long-term debt | $ | 136,800 | |||||
| Net fixed assets | $ | 344,426 | Owner's equity | $ | 229,722 | ||
| Total assets | $ | 390,534 | Total liabilities and owners’ equity | $ | 390,534 | ||
| GRAFFITI ADVERTISING, INC. Balance Sheet as of December 31, 2016 |
|||||||
| Cash | $ | 14,306 | Accounts payable | $ | 10,512 | ||
| Accounts receivable | 21,099 | Notes payable | 16,466 | ||||
| Inventory | 22,754 | Current liabilities | $ | 26,978 | |||
| Current assets | $ | 58,159 | |||||
| Long-term debt | $ | 152,000 | |||||
| Net fixed assets | $ | 406,311 | Owner's equity | $ | 285,492 | ||
| Total assets | $ | 464,470 | Total liabilities and owners’ equity | $ | 464,470 | ||
a.Calculate the operating cash flow.(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Operating cash flow $
b.Calculate the change in net working capital.(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Change in net working capital $
c.Calculate the net capital spending.(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Net capital spending $
d.Calculate the cash flow from assets.(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Cash flow from assets $
e.Calculate the cash flow to creditors.(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Cash flow to creditors $
f.Calculate the cash flow to stockholders.(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Cash flow to stockholders $
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