Final answer:
Net income for Manaia Manufacturing in 2022 is calculated as sales - cost of goods sold - depreciation - interest expense - taxes, resulting in $3,267.25. The operating cash flow is the net income plus depreciation, which sums up to $6,772.25. Cash flow from assets factors in operating cash flow minus changes in net working capital and net fixed assets, resulting in $2,362.25. Cash flow to creditors is simply the interest expense of $539, and cash flow to stockholders is the negative of dividends paid, -$845.
Step-by-step explanation:
To answer the student's question, we'll need to perform several financial calculations based on the given data. Firstly, let's calculate the net income for 2022.
Net Income = Sales - Cost of Goods Sold - Depreciation - Interest Expense - Taxes
Taxes = (Sales - Cost of Goods Sold - Depreciation - Interest Expense) * Tax Rate
Taxes = ($30,124 - $21,722 - $3,505 - $539) * 25% = $1,089.75
Net Income = $30,124 - $21,722 - $3,505 - $539 - $1,089.75 = $3,267.25
Next, to compute the operating cash flow for 2022, we'll add the depreciation back to the net income since it's a non-cash expense.
Operating Cash Flow = Net Income + Depreciation Expense = $3,267.25 + $3,505 = $6,772.25
For the cash flow from assets for 2022, we need to consider the changes in net working capital and changes in net fixed assets in addition to operating cash flow.
Net Working Capital Change = (End Current Assets - End Current Liabilities) - (Start Current Assets - Start Current Liabilities)
Net Working Capital Change = ($4,436 - $3,061) - ($3,117 - $3,665) = $1,365
Change in Net Fixed Assets = Ending Net Fixed Assets - Beginning Net Fixed Assets = $23,062 - $20,017 = $3,045
Cash Flow from Assets = Operating Cash Flow - Net Working Capital Change - Change in Net Fixed Assets = $6,772.25 - $1,365 - $3,045 = $2,362.25
The cash flow to creditors for 2022 and cash flow to stockholders are calculated by considering the interest expense and dividends.
Cash Flow to Creditors = Interest Expense = $539
Cash Flow to Stockholders = Dividends Paid = -$845
Please remember to round these calculated values to the nearest whole number when necessary.