Answer with working

Question

Weedon Ltd is trying to do some financial planning for the coming year. Weedon Ltd plans to raise $10,000 in new equity this year and wants to pay a dividend to shareholders of $39,000 in total. The company must pay $20,000 interest during the year and will also pay down principal on its debt obligations by $10,000. If the company continues with its capital budgeting plan, it will require $112,793 for capital expenditures during the year. Given the above information, how much cash must be provided from operations for the company to meet its plan?

Answer 1

Hello, Claire,

I tried several times to copy and paste my chart but the space limitation won't allow it. I put it on a Google Sheet spreadheet: https://docs.google.com/spreadsheets/d/1wCThKBvHUOV97vdsUAkuT3l2FLC9443LJzxvC7-XvsQ/edit?usp=sharing

I hope it helps, Bob