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1) Schwert Corp. shows the following information on its 2010 income statement: sales= $193,000; costs = $96,500; other expenses = $5,100; depreciation expenses = $13,800; interest expenses = $10,400; taxes = $23,520; dividends = $12,500. In addition, you’re told that the firm issued $6,000 in new equity during 2010 and redeemed $7,500 in outstanding long term-debt. A.What was the 2010 operating cash flow?B.What was the 2010 cash flow to creditors?C.What was the 2010 cash flow to stockholders?D.If net fixed assets increased by $28,000 during the year, what was the addition to NWC?2)Sexton Corp. has current liabilites of $325,000, a quick ratio of .85%, inventory turnover of 9.5 and a current ratio of 1.25. What is the cost of goods sold?3) The Optical Scam Company has forecast an 18% sales growth rate for next year. The current financials are below. Current assets , fixed assets and short-term debt are proportional to sales. +Income StatementSales $37,000,000Costs $28,900,000Taxable Income $8,100,000Taxes $2,835,000Net Income $5,265,000Dividends $1,579,500Add. To Retained Earnings $3,685,500+AssetsCurrents Assets $10,500,000Fixed Assets $30,000,00Total Assets$40,500,000+LiabilitiesShort Term Debt $6,500,000Long Term Debt $7,000,000Common Stock $3,000,000Accumulated Retained Earnings $24,000,000Total Equity $27,000,000Total Liab. & Equity $40,500,000(A)Calculate external funds for next year. Using equation (B)Construct the firm’s pro forma balance sheet for next year and confirm the external funds needed you calculated in part (a).(C)Calculate the substantial growth rate for the company.(D)Can optical scam eliminate the need for external funds by changing its dividend policy?4) A company has net income of $187,000, a profit margin of 6.5% and an accounts receivable balance of $145,900. Assuming 80% of sales are on credit, what is the company’s days’ sales in receivables?****Please show steps as I am completely confused on how to do these. I have been trying for hours but cannot get the correct answer that matches my book. These are questions that my professor said will have SIMILAR ones on later tests so I want to make sure I can do them when a test does come around. Thanks for all the help!
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