HW 1 solutions

# HW 1 solutions - HW 1 Key 1 What is the amount of the net...

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HW 1 Key

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1. What is the amount of the net working capital for 2009? A. \$17,700 B. \$16,300 C. -\$600 D. \$29,800 NWC 2009 = \$2,800 + \$8,700 + \$18,300 - \$12,100 = \$17,700 2. What is the net capital spending for 2009? Net capital spending 2009 = \$37,100 - \$36,400 + \$7,100 = \$7,800 3. What is the total amount of stockholders' equity for 2009? Stockholders' equity 2009 = \$16,000 + \$9,400 = \$25,400 4. What is the amount of the non-cash expenses? Non-cash expenses = \$7,100 5. How much was paid out to shareholders in the form of dividends during 2009? A. \$12,400 B. \$12,700 C. \$12,100 D. \$0 Dividends paid = \$12,400 - (\$9,400 - \$9,700) = \$12,700
6. What is the amount of the operating cash flow? Operating cash flow = \$21,000 + \$7,100 - \$6,400 = \$21,700 7. What is the cash flow from assets? Cash flow from assets = OCF - NCS - Change in NWC = \$21,700 - \$7,800 - [\$17,700 - (\$2,500 + \$9,100 + \$17,200 - \$12,500)] = \$12,500 8. What is the cash flow to creditors? Cash flow to creditors = \$2,200 - (\$29,400 - \$28,000) = \$800

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