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Math Help - cash flow from business

  1. #1
    Junior Member
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    cash flow from business

    (Partial Balance sheet)

    2006
    current assets: 725 current liabilities:290
    net fixed assets:2990 long term debt:1580


    2007
    current assets:785 current liabilities: 325
    net fixed assets: 3600 long-term debt: 1680


    2007 Income statment:

    Sales:9200
    Costs:4290
    Depreciation: 820
    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.
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  2. #2
    Junior Member
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    Feb 2009
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    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)

    = 3376.5
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