Homework Answers
FCF = EBIT - Taxes + Depreciation & Amortization - Capex – Change in Working Capital
EBIT = $ 8592
Depreciation & Amortization expenses = $ 1406
Capex = $ 3053
Change in WC = Changes in Inventory + Changes in A/R - Changes in A/P
= (126 -121) + (1379 - 1339) - (3407 - 3147)
= $ -215
So, Free Cash Flow = EBIT - Taxes + Depreciation & Amortization - Capex – Change in Working Capital
= $ 8592 - $ 2825 + $ 1406 - $ 3053 - (-$215)
= $4335
In case of all equity financing, Interest expense will be Nil and assuming tax rate of 35% (as per Part b),
Taxes = 35%*$8592 = $3007.20
So, Free Cash Flow = EBIT - Taxes + Depreciation & Amortization - Capex – Change in Working Capital
= $ 8592 - $ 3007.20 + $ 1406 - $ 3053 - (-$215)
= $4152.80
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please i need correcr answers to A and C.
The following table shows an abbreviated income...
pleasz i need assitance with questions below. The following table shows an abbreviated income statement and...
pleasz i need assitance with questions below.
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016 INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) Net sales $27,571 17,573 Costs Depreciation Earnings before interest and taxes (EBIT) $8,592 Interest expense 1,406 521 Pretax income 8,071 2,825 $5,246 Тахes Net income BALANCE SHEET OF QUICK BURGER CORP., 2016 (Figures in $ millions) Assets 2016 2015 Liabilities and Shareholders' Equity Current liabilities...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016 INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) Net sales $ 27,567 Costs 17,569 Depreciation 1,402 Earnings before interest and taxes (EBIT) $ 8,596 Interest expense 517 Pretax income 8,079 Taxes 2,827.65 Net income $5,251.35 2016 2015 3,403 367 3,143 3,510 BALANCE SHEET OF QUICK BURGER CORP., 2016 (Figures in $ millions) 2016 2015 Liabilities and Shareholders' Equity Current liabilities...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) Net sales $ 27,580 Costs 17,582 Depreciation 1,415 Earnings before interest and taxes (EBIT) $ 8,583 Interest expense 530 Pretax income 8,053 Federal plus other taxes 2,819 Net income $ 5,234 201 2019 2018 $ $ - 3,416 3,416 $ 406 3,156 $ 3,562 Assets Current assets Cash and marketable securities Receivables...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) $ 27,573 Net sales Costs 17,575 Depreciation Earnings before interest and taxes (EBIT) 1,408 $ 8,590 Interest expense 523 8,067 2,823 Pretax income Federal plus other taxes $ 5,244 Net income BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) Liabilities and Shareholders' Equity 2019 Assets 2019 2018 2018 Current...
Please help: The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019
In 2019 Quick Burger had capital expenditures of $3,052. a. Calculate Quick Burger’s free cash flow in 2019. (Enter your answer in millions.)b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)c. What would the company’s free cash flow have been if it was all-equity financed? (Enter your answer in millions.)
please i need answers to Question e & f. South Sea Baubles has the following (incomplete)...
please i need answers to Question e & f.
South Sea Baubles has the following (incomplete) balance sheet and income statement BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders 2016 Equity 195 Current liabilities 2015 2016 2015 Assets $ 72 $93 $101 $ Current assets 655 860 910 Net fixed assets 1,010 Long-term debt INCOME STATEMENT, 2016 (Figures in $ millions) $2,005 Revenue Cost of goods sold 1,085 Depreciation Interest expense 405 251 a&b. What...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
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Refer to the January 29, 2016, income statement and balance sheet of Lowe's Companies Inc. below....
Refer to the January 29, 2016, income statement and balance sheet of Lowe's Companies Inc. below. LOWE'S COMPANIES INC. Income Statement (In millions) For Fiscal Year Ended January 29, 2016 Net sales.............................................. Cost of sales.................................. ... Gross margin ....................................... Selling, general and administrative Depreciation.. tion......................................... Interest-net........................................ Total expenses... Pretax earnings Income tax provision ... Net earnings $59,074 38,504 20,570 14,115 1,484 552 16.151 4,419 1,873 $ 2,546 Required: Compute the following liquidity, solvency, and coverage ratios for Lowe's Companies. Interpret...
gives abbreviated balance sheets and income statements for Walmart. Calculate the following using balance-sheet figures from...
gives abbreviated balance sheets and income statements for
Walmart. Calculate the following using balance-sheet figures from
the start of the year.
a) Return on assets. The tax rate is 34.5%
b) ROE
c) Assets turnover
d) Inventory turnover and average days in Inventory
e) Total Debt to Equity ratio.
f) Current ratio.
g) Quick ratio
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pleasz i need assitance with questions below.
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016 INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) Net sales $27,571 17,573 Costs Depreciation Earnings before interest and taxes (EBIT) $8,592 Interest expense 1,406 521 Pretax income 8,071 2,825 $5,246 Тахes Net income BALANCE SHEET OF QUICK BURGER CORP., 2016 (Figures in $ millions) Assets 2016 2015 Liabilities and Shareholders' Equity Current liabilities...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016 INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) Net sales $ 27,567 Costs 17,569 Depreciation 1,402 Earnings before interest and taxes (EBIT) $ 8,596 Interest expense 517 Pretax income 8,079 Taxes 2,827.65 Net income $5,251.35 2016 2015 3,403 367 3,143 3,510 BALANCE SHEET OF QUICK BURGER CORP., 2016 (Figures in $ millions) 2016 2015 Liabilities and Shareholders' Equity Current liabilities...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) Net sales $ 27,580 Costs 17,582 Depreciation 1,415 Earnings before interest and taxes (EBIT) $ 8,583 Interest expense 530 Pretax income 8,053 Federal plus other taxes 2,819 Net income $ 5,234 201 2019 2018 $ $ - 3,416 3,416 $ 406 3,156 $ 3,562 Assets Current assets Cash and marketable securities Receivables...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) $ 27,573 Net sales Costs 17,575 Depreciation Earnings before interest and taxes (EBIT) 1,408 $ 8,590 Interest expense 523 8,067 2,823 Pretax income Federal plus other taxes $ 5,244 Net income BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) Liabilities and Shareholders' Equity 2019 Assets 2019 2018 2018 Current...
please i need answers to Question e & f.
South Sea Baubles has the following (incomplete) balance sheet and income statement BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders 2016 Equity 195 Current liabilities 2015 2016 2015 Assets $ 72 $93 $101 $ Current assets 655 860 910 Net fixed assets 1,010 Long-term debt INCOME STATEMENT, 2016 (Figures in $ millions) $2,005 Revenue Cost of goods sold 1,085 Depreciation Interest expense 405 251 a&b. What...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Nordstrom, Inc. for 2016 and 2015 follows. ole ($ millions) 2016 2015 Cash $ 595 $ 827 Accounts receivable 196 2,306 Current assets 3,014 5,224 Current liabilities 2,911 2,800 Long-term debt 2,795 3,123 Short-term debt 10 8 Total liabilities 6,827 6,805 Interest expense 153 156 Capital expenditures 1,082 861 Equity 871 2,440 Cash from operations 2,451 1,220 Earnings before interest and taxes 1,101 1,323...
Refer to the January 29, 2016, income statement and balance sheet of Lowe's Companies Inc. below. LOWE'S COMPANIES INC. Income Statement (In millions) For Fiscal Year Ended January 29, 2016 Net sales.............................................. Cost of sales.................................. ... Gross margin ....................................... Selling, general and administrative Depreciation.. tion......................................... Interest-net........................................ Total expenses... Pretax earnings Income tax provision ... Net earnings $59,074 38,504 20,570 14,115 1,484 552 16.151 4,419 1,873 $ 2,546 Required: Compute the following liquidity, solvency, and coverage ratios for Lowe's Companies. Interpret...
gives abbreviated balance sheets and income statements for
Walmart. Calculate the following using balance-sheet figures from
the start of the year.
a) Return on assets. The tax rate is 34.5%
b) ROE
c) Assets turnover
d) Inventory turnover and average days in Inventory
e) Total Debt to Equity ratio.
f) Current ratio.
g) Quick ratio
Table 28.8 Balance sheets and income statement for Walmart, fiscal 2017 and 2016 (figures in $ millions) Fiscal 2017 Fiscal 2016 Balance Sheet Assets Current...
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