FINANCE-Class Problem 1 Cash Flows Firm X Income Statement Sales $ 15,000

Class Problem 1Cash FlowsFirm X Income StatementSales$ 15,000COGS$ 9,200Gross Profit$ 5,800Cash Oper Exp$ 1,380Depr$760EBIT$ 3,660Interest$290TI$ 3,370Taxes$ 1,314NI$ 2,056Dividend$484Addition to R.E.$ 1,572Tax RateBeginning Net Fixed AssetsEnding Net Fixed AssetsDepreciation (from Income Stmt above)$ 7,500$ 8,200Beginning Current AssetsEnding Current Assets$ 72$ 84Beginning Current LiabilitiesEnding Current Liabilities39%$ 43$ 47What is the operating cash flow after tax ? Calculate taxes as t(EBIT), don’t usethe taxes from the Income Statement.What is the cash flow to the firm (CFF)?If Firm X paid interest in the amount shown in the income statement above, $1,740 in principal,and borrowed an additional $800, what is the cash flow to debt from the perspective of thedebt holders?What is the cash flow to equity from the perspective of the equity holders?Considering the dividend shown in the income statement and a share repurchase of $700,what dollar amount of new shares were issued by the firm?Check Answers: OCFAT = $2,993, CFF = $1,525, CF(Debt) = $1,230, CF(Equity) = $295,New Stock Issues = $889

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