Explore BrainMass

Calculating Cash Flows

Titan Football Manufacturing had he following operating results for 2014: sales=23,730, cost of goods sold= 16,780, depreciation expense=2,840, interet expense=414, dividends paid =616, At the begining of the year, net fixed asset were 16,560, current assets were 2,940, and current liabilities were 2,592. At the end of the year, net fixed assets were 18,840, current assets were 3,528 and current liabilities were 2,484. The tax rate for 2014 was 35 percent
A .What is the net income for 2014
B. What is the operating cash flow for 2014
C. What is the cash flow from assets for 2014?
D. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to stockholders?

Solution Preview

Solution is attached. Glad to help.

Sales 23,730
COGS 16,780
Gross Profit 6,950
Depreciation 2,840
EBIT 4,110
Interest 414
Income before Taxes 3,696
Taxes 1,294
Net Income 2,402

EBIT 4,110 ...

Solution Summary

Solution shows step by step calculations for cash flow from assets, cash flow to creditors and cash flow to stockholders.