Suppose you are given the following financial statement information for 2015 and 2016. Calculate the operating...

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Finance

Suppose you are given the following financial statementinformation for 2015 and 2016. Calculate the operating cash flows(OCF) for 2016. (Enter a whole number).
IncomeStatement (2016) BalanceSheet
Sales $9,352 2015 2016
Cost of goods sold $3,612 Cash $2,450 $2,856
Other Expenses $95 Accounts Receivable $1,690 $1,780
Depreciation $1,250 Inventory $3,570 $3,460
EBIT $4,395 Current Assets $7,710 $8,096
Interest $45 Net Fixed Assets $4,289 $4,319
EBT $4,350 Total Assets $11,999 $12,415
Taxes (30%) $1,305.00
Net income $3,045.00 Accounts Payable $1,278 $1,478
Dividends $2,436.00 Notes Payable $2,568 $2,658
Addition to Retained Earnings $609.00 Current Liabilities $3,846 $4,136
Long-term Debt $2,985 $2,929
Total Equity $5,168 $5,350
OCF =??? Total L + E $11,999 $12,415

Answer & Explanation Solved by verified expert

4.3 Ratings (839 Votes)

The question is not clear as to whether the requirement is Statement of cash flows [Operating activities] or

the accounting measure OCF. Hence, both answers are given.

STATEMENT OF CASH FLOWS (INDIRECT METHOD)
Cash flows from operating activities:
Net income		$ 3,045
Adjustments to reconcile net income to net cash flows from operating activitiess:
Depreciation expense	$ 1,250
Increase in accounts receivable	$ -90
Increase in inventory	$ -110
Increase in accounts payable	$ 200	$ 1,250
Net cash provided by operating activities		$ 4,295

Operating cash flow = EBIT+Depreciation-Taxes = 4395+1250-1305 =	$ 4,340

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Transcribed Image Text

Suppose you are given the following financial statementinformation for 2015 and 2016. Calculate the operating cash flows(OCF) for 2016. (Enter a whole number).IncomeStatement (2016)BalanceSheetSales$9,35220152016Cost of goods sold$3,612Cash$2,450$2,856Other Expenses$95Accounts Receivable$1,690$1,780Depreciation$1,250Inventory$3,570$3,460EBIT$4,395Current Assets$7,710$8,096Interest$45Net Fixed Assets$4,289$4,319EBT$4,350Total Assets$11,999$12,415Taxes (30%)$1,305.00Net income$3,045.00Accounts Payable$1,278$1,478Dividends$2,436.00Notes Payable$2,568$2,658Addition to Retained Earnings$609.00Current Liabilities$3,846$4,136Long-term Debt$2,985$2,929Total Equity$5,168$5,350OCF=???Total L + E$11,999$12,415

IncomeStatement (2016)		BalanceSheet
Sales	$9,352		2015	2016
Cost of goods sold	$3,612	Cash	$2,450	$2,856
Other Expenses	$95	Accounts Receivable	$1,690	$1,780
Depreciation	$1,250	Inventory	$3,570	$3,460
EBIT	$4,395	Current Assets	$7,710	$8,096
Interest	$45	Net Fixed Assets	$4,289	$4,319
EBT	$4,350	Total Assets	$11,999	$12,415
Taxes (30%)	$1,305.00
Net income	$3,045.00	Accounts Payable	$1,278	$1,478
Dividends	$2,436.00	Notes Payable	$2,568	$2,658
Addition to Retained Earnings	$609.00	Current Liabilities	$3,846	$4,136
		Long-term Debt	$2,985	$2,929
		Total Equity	$5,168	$5,350
OCF	=???	Total L + E	$11,999	$12,415