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You have gathered this information on JJ Enterprises: Please include formula What is the cash...

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You have gathered this information on JJ Enterprises: Please include formula What is the cash flow from assets for 2015?

Particulars 2014 2015
Sales $6,318 $7,202
COGS $3,945 $4,460
interest $303 $277
Depreciation $1,204 $1,196
Cash $672 $418
Accounts receivables $601 $578
Current liabilities $414 $463
Inventory $1,215 $1,598
Long term debt $4780 $4,103
Net fixed assets $7,700 $7,330
Shareholder's equity $4,994 $5,358
Taxes $217 $317

What is the cash flow from assets for 2015?

Cash flow from Assets:

Cash flow from assets is the cumulative total of all cash flows that is generated from the assets of a business. Basically it represents the cash flow the investment (asset) spins off based on its existing capital structure and operation. It is important to the potential investors to know how the company is comfortable to services the future liabilities if required.

Answer and Explanation:

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Cash flow to creditors = Interest paid - Net new borrowing {eq}= $277 - ($4,103 - $4780) = $ 954 {/eq}

Cash flow to stockholders = Dividends paid - Net new equity {eq}= 0 - ($5,358-$4,994) = -$ 364 {/eq}

So, Cash flow from assets {eq}= $ 954 + (-$ 364 )= $ 590 {/eq}


Learn more about this topic:

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Project Cash Flow: Analysis & Examples

from Finance 101: Principles of Finance

Chapter 10 / Lesson 1
23K

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