Question

Use the following information for Taco Swell, Inc., (assume the tax rate is 22 percent):
2017 2018
Sales $23,549 $19,188
Depreciation 2,516 2,624
Cost of goods sold 6,390 6,871
Other expenses 1,441 1,248
Interest 1,180 1,395
Cash 8,746 9,667
Accounts receivable 11,628 13,902
Short-term notes payable 1,814 1,781
Long-term debt 29,480 35,579
Net fixed assets 73,091 78,030
Accounts payable 6,353 7,060
Inventory 20,662 22,002
Dividends 2,679 2,454
For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.

Answer 1

Answer:

Cash Paid to Suppliers and Employees =  8,752

Cash flow from Assets = (4,939)

Cash flow to stockholders = (2,454)

Explanation:

The cash flow from assets, cash flow to creditors, and cash flow to stockholders are all calculated in the Statement of Cash flow under the following headings :

Cash flow from Operating Activities

Cash Paid to Suppliers and Employees Calculation :

Cost of goods sold                                  6,871

Add Other Expenses                               1,248

Adjustments :

Increase in Inventory                               1,340

Increase in Accounts payable                 (707)

Cash Paid to Suppliers and Employees 8,752

Cash flow from Investing Activities Calculation :

Purchase of Fixed Assets                    (4,939)

Cash flow from Assets                         (4,939)

Cash flow from Financing Activities

cash flow to stockholders calculation

Dividends Paid                                      (2,454)

Cash flow to stockholders                   (2,454)