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ki77a
5 days ago
7

The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,435,000, $147,000 in the common stock account,

and $2,720,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,650,000, $157,000 in the common stock account and $3,020,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $97,500 and the company paid out $152,000 in cash dividends during 2019. The firm’s net capital spending for 2019 was $1,030,000, and the firm reduced its net working capital investment by $132,000. What was the firm's 2019 operating cash flow, or OCF?
Business
1 answer:
harina [3.5K]5 days ago
5 0

Answer:

$34,500

Explanation:

Whelan, Inc.

Operating Cash Flow for 2019

Details Amount ($)

Interest paid (97,500)

Reduction in net working capital investment 132,000

Total net operating cash flow 34,500

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Answer:

$2,274,639.75

Explanation:

The endowment as of July 2010 was $15,000,000

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Funds reserved for operational expenses = $250,000/0.05 = $5,000,000

Available funds for capital replacement = $13,232,500 - $5,000,000 = $8,232,500

Effective interest rate over 5 years = (1+0.05)^5 - 1 = 0.2763

Annual capital replacement funds every fifth year indefinitely = $8,232,500 (0.2763) = $2,274,639.75

8 0
1 month ago
Type the correct answer in the box. Spell all words correctly. Helena works at a paper mill. She has just blocked a proposal fro
soldi70 [3439]

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6 0
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Exotic crafts inc., a handicraft manufacturing company, has an established marketing department responsible for various importan
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The firm initially produced 500 pants and 700 shirts. If the firm decides to increase the number of shirts by 100 units, the opp
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Hippo, Lion, and Possum must decide how to split up the three bedrooms (big, medium, and small) in the house that they are renti
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