Question

Fin 325-Homework #1 You have the following information (denoted in millions) about ABC CCR for Jan 31, 2019: Current Assets=500, Current Liabilities 420, Fixed Assets-2000 and Jan 31, 2020: Current Assets=600, Current Liabilities-450, Fixed Assets#2400 And the following revenue and expense information for the period from 2/1/19 to 1/31/20 Sales - 1900, COGS - 800, Fixed Costs-350, Depreciation - 300, Interest Paid - 150, Dividends - 40, Tax Rate=20% No new equity was raised. 1. Construct the income statement for ABC corporation. 2. Find operating cash flow, CAPEX, and change in net working capital. 3. Find cash flow from assets and new borrowing.

Answer 1

Income statement for ABC constructing the - Corkstation Amt in G particulars 1900 800 350 300 a) Sales b) COGS con c) pised cost e) Depreciation e) Interest f) EBIT (a b-c-1d-e) boog g) Tas @ 204: (300 x 20.) h) Net Income. Of g) Coton 150 300 GO to

-2. Calculating operating cash flow , CAPEX and E change in net working capitat particulars Antin (6) of operating cash flow to a) Net Income b non cash Expenses (usually Repreciation Expenses c) changes in working capital 70 (W.10:1) d) operating cash flow (a+b-c) 470 working Notes 240 300 Change in working capital - Current Assets - current habilities on 31-01-2020) - Current Assets - current liabilities on 31-01-2018) = 600 - 450) - 600 -420) - 150–80 = $70 CA PEX Fixed Fixed Assets in current year - Assets in previous year 2400 - 2000 = 400

3) Cash Flow from assets and new borrowing = (net Income + depreciation) + change in working capital -CAPEX = 240 + 300 -7013) $670 Mitos

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