Ross - Chapter 06
Samoa's Tools has sales of $760,000 and a profit margin of 8 percent. The annual
depreciation expense is $50,000. What is the amount of the operating cash flow if the
company has no long-term debt?
NI = 760k(.08)=60,800
Alpha Co. is paying a $.72 per share dividend today. There are 138,000 shares outstanding with a par value of $1 per
share. As a result of this dividend, the:
retained earnings will decrease by $99,360.
retained earnings will decrease by $138,000.