Assume the current U.S. dollar-yen spot rate is 90 ¥/$. Further, the current nominal 180-day rate of return in Japan is 1% (annu
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Answer:
a. Operating Cash flow = 56,025
b. Cash flow to credit = 18,400
c. Cash flow to Stockholder = 5,800
d. There is no addition to Net Working capital if Fixed assets increased by $46,000.
Explanation:
a.
Operating Cash flow = Sales - Total cash Expenses
Operating Cash flow = Sales - ( Costs + Other Expenses + Interest Expense + Taxes )
Operating Cash flow = 398,000 - ( 298,000 + 7,900 + 14,200 + 21,875 )
Operating Cash flow = 398,000 - 341,975
Operating Cash flow = 56,025
b.
Cash flow to credit = Interest paid - Ending Long term debt + Beginning Long term debt
Cash flow to credit = 14,200 + 4200 + 0
Cash flow to credit = 18,400
c.
Cash flow to Stockholder = Dividend payment - New Stock Issued
Cash flow to Stockholder = 11,500 - 5,700
Cash flow to Stockholder = 5,800
d.
There is no addition to Net Working capital if Fixed assets increased by $46,000. As Fixed asset are not the part on Working capital. Working capital only account for the current assets and current liabilities.
Net Working Capital = Current Assets - Current Liabilities
Not: The requirement were missing in the question so the answer is made according to original question which is attached as a picture with this answer.
