working notes | |||||||
COMPUTATION FREE CASHFLOW | 2019 | 2018 | EBIT | 1008 | |||
Tax rate | 25% | ||||||
NOPAT =EBIT(1-t) | 756 | NOPAT(EBIT*(1-t) | 756 | ||||
OPERATING CURRENT ASSETS | 4400 | 4000 | Depreciation and amortisation | 380 | |||
OPERATING CURRENT LIABILITIES | 1650 | 1500 | Changes in WC | 2019 | 2018 | ||
Total current assets | 4400 | 4000 | |||||
NET OPERATING WORKING CAPITAL | 2750 | 2500 | Total current liabilities | 1650 | 1500 | ||
NET FIXED ASSETS | 3850 | 3500 | |||||
TOTAL NET OPERATING CAPITAL | 6600 | 6000 | |||||
Capital Expenditure | |||||||
NOPAT | 756 | ||||||
-Investment in Net Operating Capital | 600 | Opening Net fixed assets | 3500 | ||||
=FREE CASH FLOW | 156 | Less depreciation for Yr 2019 | -380 | ||||
3120 | |||||||
USES OF FCF | Closing Net Fixed Assets | 3850 | |||||
After tax interest payment | 90 | Capital Expenditure | 730 | ||||
Reduction (increase) in LT & ST borrowings | -284 | ||||||
Payment of dividends | 202 | ||||||
Repurchase (issue) stock | 88 | ||||||
Purchase (sale) of short term securities | -10 | ||||||
86 |
Please show work Midterm qu File View Tell me what you want to do... - ....
Using Rhodes Corporation’s financial statements (shown after part f), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2018? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2018? e. What is the ROIC for 2018? f. How much of the FCF did Rhodes use for each of the...
a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2019 b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2019 c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2019 d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c) Keith Corporation Balance Sheets December 31 Assets Cash Marketable securities Accounts receivable Inventories 2019 2018 $1,510 1,750 1,980 2,860...
Keith Corporation Balance Sheets December 31 Assets Cash Marketable securitie Accounts receivable Inventories 2019 2018 $1,480 1,770 2,050 2,860 $8,160 $29,470 14,690 $14,780 $22,940 $990 1,210 1,740 2,850 $6,790 $28,150 13,050 $15,100 $21,890 Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals $1,640 2,790 200 $4,630 $4,900 S9,530 $10,050 3,360 $13,410 $22,940 $1,510 2,190 300 54,000 $5,070 S9,070 $10,050 2,770 $12,820 $21,890 Total current liabilities Long-term...
please do it asap and show the work! Using the information on the income statement and balance sheet to prepare the statement of cash flow for the year of 2019 Income Statement 2018 2019 2018 5517 2018 S250 1,092 1,495 2.837 2019 5951 100 Cash Accounts Receivable Inventory Current Assets 200 Sales COGS Depreciation EBIT Interest Expense Tax Income Taxes Net Income $5,831 3,670 125 2,036 291 1,745 590 1.155 $6,423 4,109 122 2,192 280 1912 670 1.242 Balance Sheet...
Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2019 b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2019 c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2019 d. Interpret, compare and contrast your cash flow estimate in parts...
OCF=operating cash flow NCS-net capital spending NWC= net working capital CFS=cash flow to shareholders CFC=cash flow to creditors FCF=free cash flow 1. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement 2019 Revenues $20,000 Cost of Goods Sold $10.000 Other operating expenses $1,000 Depreciation expense $3.000 EBIT $6,000 Interest Expense $3,200 Taxable income $2.800 Taxes $840 Net income...
. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement Revenues Cost of Goods Sold Other operating expenses Depreciation expense EBIT Interest Expense Taxable Income 2019 $20,000 $10,000 $1,000 $3,000 $6,000 $3,200 $2800 $840 $1,960 Taxes Net income 2020 2019 2020 Balance Sheet 2019 $12,000 Current Liabilities $9,000 $8,000 Current Assets $10,000 $88,000 Long-term debt $80,000 $186,000 Total...
Please show the calculation steps, Thank you. 2017 2018 $12.17 Year-end common stock price Year-end shares outstanding $6.00 250,000 100,000 40% Tax rate 40% Balance Sheets Prepare the following: Assets Cash and equivalents Short-term investments Accounts receivable Inventories Total current assets Gross Fixed Assets Less Accumulated Dep Net Fixed Assets Total Assets 2017 2018 $14,000 &718 $71,632 $878,000 S1,716,480 $2,680,112 $1,220,000 $7,282 1). Statement of Cash Flow 2018 $20,000 S632,160 $1,287,360 $1,946,802 $1,202,950 $263,160 2). Free Cash Flow available for...
Baresse Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2019 2018 Sales $11,000 $10,000 Operating costs excluding depreciation 9,360 8,500 Depreciation and amortization 380 360 Earnings before interest and taxes $1,260 $1,140 Less interest 120 100 Pre-tax income $1,140 $1,040 Taxes (40%) $456 $416 Net income available to common shareholders $684 $624 Common dividends $220 $200 Baresse Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2019 2018 Assets Cash $550 $500 Short term investments 110...
Create a statement of cash flows for the year 2019 2019 2018 Sales 11,000 10,000 COGS 9,322 8,448 Gross Profit 1,678 1,552 Depreciation and amortization 380 360 Selling & Admin. Expense 290 280 Earnings before interest and taxes 1,008 912 Interest expense 120 100 Earnings Before taxes 888 812 Taxes 222 203 Net income 666 609 Note: Tax rate 25% 2019 2018 Assets Cash 550 500 Short-term Investments 110 100 Accounts Receivable 2,750 2,500 Inventories 1,650 1,500 Total current assets...