cash flow from business
(Partial Balance sheet)
current assets: 725 current liabilities:290
net fixed assets:2990 long term debt:1580
current assets:785 current liabilities: 325
net fixed assets: 3600 long-term debt: 1680
2007 Income statment:
interst paid: 234
In 2007 they purchased 1500 in new fixed assets. How much fixed assets did they sell? What is the cash flow from assets for the year? ( the tax rate is 35 percent)
I'm confused on what to do help would be much appretiated.
Sold 890 in assets.
cash flow from assets = cash flow from operations - capital expenditures - changes to net working capital
cash flow from operations = EBIT + depreciation - taxes
changes in net working capital = 25
c.f assets = 4011.5 - 25 - 610(capital expenditure for the year)