Problem

Nanticoke Ind. had the following operating results for 2015: sales 22800; costs of goods sold =16050; depreciation expense = 4050; interest expense = 1830; dividends paid =1300. at the beginning of the year, net assets were 13650, current assets were 4800. current liabilities were 2700. At the end of the year, net fixed assets were 16800, current assets were 5930, and current liabilites were 3150. The tax rate for 2015 was 34 percent.

a) What is net income for 2015?

b) What is the operating cashflow for 2015?

c) What is the cash flow from assets for 2015? is this possible? explain.

d) If no new debt was issued during the year, what is the cash flow to creditors? what is the cash flow to shareholders? Explain and interpret the positive and negative signs of yout answers in (a) through (d).