please show the work and provide correct answers. This is from financial management course
1. Answer: EBT : $ 3,400
Sales | $ 12,500 |
Less: Operating Costs | 7,250 |
EBITDA | 5,250 |
Depreciation Expense | 1,250 |
EBIT | 4,000 |
Interest Expense | 600 |
EBT | $ 3,400 |
2. Answer: Net Income :$ 3,830.94
Sales | $ 15,000 |
Less: Operating Costs | 7,500 |
EBITDA | 7,500 |
Less: Depreciation Expense | 1,200 |
EBIT | 6,300 |
Interest Expense | 406.25 |
EBT | 5,893.75 |
Tax @ 35 % | 2,062.81 |
Net Income | 3,830.94 |
3. NOPAT = EBIT * ( 1 - t ) = $ 700 * ( 1 - 0.35 ) = $ 455.
4. Dividends paid by Heaton during 2015 = $ 555,000 + $ 172,500 - $ 675,000 = $ 52,500
5. Net income earned during the year = $ 187,500 + $ 21,,750 - $ 132,250 = $ 77,000
6. Net cash flow to creditors = $ 45,750 + $ 275,000 - $ 150,000 = $ 170,750
7. Operating Cash Flow ( OCF ) = EBITDA * ( 1 - t ) + Depreciation Expense * t = $ ( 225,750 - 135,550 ) * 0.65 + $ 25,000 x 0.35 = $ 67,380
please show the work and provide correct answers. This is from financial management course In-Class Exercise...
pls answer all the questions and show the work In-Class Exercise - Accounting Review 10. Angie Animal House had current assets of $55,300 and current liabilities of $47.950 last year. This year, the current assets are $80,400 and the current liabilities are $82,100. The depreciation expense for the past vear is $10,600 and the interest paid is $7.800. What is the amount of the change in net working capital (NWC)? Chapter 3 - Analysis of Financial Statements 11. Bloom Car...
pls show the work In-Class Exercise - Accounting Review 10. Angie Animal House had current assets of $55,300 and current liabilities of $47.950 last year. This year, the current assets are $80,400 and the current liabilities are $82,100. The depreciation expense for the past vear is $10,600 and the interest paid is $7.800. What is the amount of the change in net working capital (NWC)? Chapter 3 - Analysis of Financial Statements 11. Bloom Car Rental's sales last year were...
pls do from 14 to 20 In-Class Exercise - Accounting Review 10. Angie Animal House had current assets of $55,300 and current liabilities of $47.950 last year. This year, the current assets are $80,400 and the current liabilities are $82,100. The depreciation expense for the past vear is $10,600 and the interest paid is $7.800. What is the amount of the change in net working capital (NWC)? Chapter 3 - Analysis of Financial Statements 11. Bloom Car Rental's sales last...
In-Class Exercise - Accounting Review 10. Angie Animal House had current assets of $55,300 and current liabilities of $47.950 last year. This year, the current assets are $80,400 and the current liabilities are $82,100. The depreciation expense for the past vear is $10,600 and the interest paid is $7.800. What is the amount of the change in net working capital (NWC)? Chapter 3 - Analysis of Financial Statements 11. Bloom Car Rental's sales last year were $415,000, and its year-end...
pls answer 6 to 9. pls show the work in details. In-Class Exercise - Accounting Review Chapter 2 - Financial Statements, Cash Flow, and Taxes 1. Frederickson Office Supplies recently reported $12,500 of sales, $7.250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non- operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus- state income tax rate was 40%. How much was...
6. Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-assets ratio was 27%, the interest rate on the debt was 8.2%, and the firm's tax rate was 37%. The new CFO wants to see how the ROE would have been affected if the firm had used a 45% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both...
In-Class Exercise - Accounting Review Chapter 2- Financial Statements. Cash Flow, and Taxes Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non- operating income. It had $8,000 of bonds outstanding that cary a 7.5 % interest rate, and its federal-plus- state income tax rate was 40 % . How much was the firm's taxable income, or earnings before taxes (EBT)? 1....
LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $720,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant? Select the correct answer. LeCompte Corp. has $312,900 of...
Last year Kruse Corp had $410,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net income, and a debt-to-total-capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $252,500. The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would...
1. Gebze Shipyards has $15.0 million in total invested operating capital, and its WACC is 10%. Gebze has the following income statement: Sales $12.0 million Operating costs 6.0 million Operating income (EBIT) $ 6.0 million Interest expense 2.0 million Earnings before taxes (EBT) $ 4.0 million Taxes (20%) 0.8 million Net income $ 3.2 million What is Gebze’s EVA? 2. GTYOC Aviation had a profit margin of 8.00%, a total assets turnover of 1.5, and an equity multiplier of 2.0....