Chapter 2 Problems

# Chapter 2 Problems - Depreciation \$8,000.00 Taxes...

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Kristin Yuzuik #1 - Building A Balance Sheet Assets Liabilities Current Assets \$5,300.00 Current Liabilities \$3,900.00 Fixed Assets \$26,000.00 Long Term Debt \$14,200.00 \$31,300.00 \$18,100.00 Stockholder's Equity \$13,200.00 Net Working Capital Current Assets - Current Liabilities \$1,400.00 #8 - Cashflow to Creditors Cashflow to Creditors = Interest paid - (Ending LT debt - Beginning LT debt) Ending LT debt 1.39 Million Beginning LT debt (1.34 Million) 118,000 (\$50,000) Cashflow to Creditors \$68,000 #14 - Calculating Total Cashflows Net Income \$70,600.00

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Unformatted text preview: Depreciation \$8,000.00 Taxes \$18,060.00 Accounts Payable \$11,000.00 Total Op. Cashflow \$107,660.00 Interest \$11,000.00 Retirement of old debt \$7,100.00 Debt Service \$18,100.00 Proceeds from LT debt sale \$(7,250.00) Cash Flow to Creditors \$10,850.00 #17 - Residual Claims a) Assets \$10,500.00 Liabilities \$9,700.00 Stockholder's Equity \$800.00 b) Assets \$6,800.00 Liabilities \$9,700.00 Stockholder's Equity \$(2,900.00) The company would be in debt because there are not enough assets to cover the liabilities....
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## This note was uploaded on 04/10/2010 for the course FIN 600 taught by Professor Hansen during the Spring '10 term at Ramapo.

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Chapter 2 Problems - Depreciation \$8,000.00 Taxes...

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