HiWay Furniture has sales of $316,000, depreciation of $47,200, interest expense of $41,400, costs of $148,200, and taxes of $16,632. The firm has net capital spending of $36,400 and a decrease in net working capital of $14,300. What is the cash flow from assets for the year?

Question

Kadyn Pearson

Business

2 January, 01:14

HiWay Furniture has sales of $316,000, depreciation of $47,200, interest expense of $41,400, costs of $148,200, and taxes of $16,632. The firm has net capital spending of $36,400 and a decrease in net working capital of $14,300. What is the cash flow from assets for the year?

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Taylor Hanson · Answer 1

Net cash flow from Assets 129,068

Explanation:

Income Statement $

Sales 316,000

Cost (148,200)

Profit before Interest & Tax 167,800

Tax (16,632)

Profit after Tax 151,168

Cash flow:

Profit After Tax 151,168

Net capital spending (36,400)

Decrease in Net working capital 14,300

Net cash flow from Assets 129,068

Assumptions under cash flow computation:

-Depreciation is a non-cash item. It is just an accounting provision

-Interest expense is assumed to be unpaid yet