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4 June, 11:30

Use the following information for Taco Swell, Inc., (assume the tax rate is 21 percent) : 2017 2018 Sales $ 19,049 $ 18,918 Depreciation 2,426 2,534 Cost of goods sold 5,940 6,781 Other expenses 1,378 1,203 Interest 1,135 1,350 Cash 8,701 9,397 Accounts receivable 11,538 13,632 Short-term notes payable 1,724 1,691 Long-term debt 29,210 35,354 Net fixed assets 72,884 77,760 Accounts payable 6,299 6,790 Inventory 20,509 21,912 Dividends 2,229 2,364 For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)

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  1. 4 June, 11:35
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    Cash Flow from Assets:

    Ending Balance of Assets in 2017 ... $77760

    Add: Depreciation ... $2534

    Less: Beginning Balance of Assets ... ($72884)

    CashOut Flow ... $7410

    Cash flow to creditors

    Ending Balance of Creditors ... $6790

    Less: Beginning Balance of Creditors ... $6299

    Less: Purchases (From Inventory) ... $8184

    Cash Flow to AP ... $7693

    Purchases from Inventory:

    Ending Balance of Inventory ... $21912

    Add: Cost of Goods Sold ... $6781

    Less: Beginning Balance of Inventory ... ($20509)

    Purchases ... $8184

    Cash flow to stock holders:

    While Preparing Accounting Equation for 2017 as below:

    Assets-Liabilities=Eq Shareholders

    113632-37233=$76399

    While Preparing Accounting Equation for 2018 as below:

    Assets-Liabilities=Eq Shareholders

    122701-43835=$78866

    Net Income for 2018

    Sales 18918

    Less: Dep (2534)

    Less: COGS (6781)

    Less:Other Exp (1203)

    Less: Interest (1350)

    Net Income before tax 7050

    Less Tax ... (1480)

    Net Income ... 5569.5

    Beginning Balance of Shareholders ... $76399

    Add: Net income ... $5569.5

    Less: Dividend ... ($2364)

    Less: Ending Balance ... ($78866)

    Cash to Shareholders ... $738
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