Homework Answers
Ans. Option 3rd
Explanation:
*Option 1st is incorrect as depreciation is added in the calculation of free cash flow so it has a positive impact on free cash flow.
*The second option would be right if the formula equation would be as follows:
Free cash flow = (Revenue - Cost - Depreciation) * (1 - tc) - Capital expenditures - ∆NWC + Depreciation
*Option 3rd is correct. The equation for free cash flow is correct in this option.
* Net working capital = Current assets - Current liabilities
Add Answer to:
Question 5 4 pts Which is the correct statement? Depreciation expense has a negative impact on...
11. The statement of financial position identity is written out as: 65 (5 Points) a. Costs...
11. The statement of financial position identity is written out as: 65 (5 Points) a. Costs = Benefits b. Assets = Liabilities + Owners' Equity c. Net Income = Revenues Expenses d. Cash Flow = Net Income + Depreciation e. Net Working Capital = Current Assets - Current Liabilities
Question3 5 pts Consider the following information from Snuggie Corp.'s most recent Income Statement. Net Sales...
Question3 5 pts Consider the following information from Snuggie Corp.'s most recent Income Statement. Net Sales were $989, Operating Costs (excluding depreciation) were $203, and Depreciation and Amortization Expense was $161. The firm's Interest Expense for the year was $75, and the firm's marginal tax rate is 35%. The firm's Or ating Cash Flow for the year is $ . Margin of error for correct responses: /-5.0 Round your answer to 2 decimal places (example: if your answer is 546.345...
Selected information regarding Beta Ltd is given below: Cash flow from operations = $1,822,970 Depreciation =...
Selected information regarding Beta Ltd is given below: Cash flow from operations = $1,822,970 Depreciation = 177,370 Interest expense = $148,375 Fixed capital investment = $451,620 Working capital investment = $237,280 Net borrowing = $328,150 Given a tax rate of 40%, free cash flow to the firm is closest to: Select one: a. $1,637,745 b. $1,371,375 c. $1,460,375 Question 4 Question text Selected information regarding Sentino Investments is given below: Earnings before interest and tax = $548,950 Interest expense =...
Comparative financial statement data for Flint Corporation and Culver Corporation, two competitors, appear below. All balance...
Comparative financial statement data for Flint Corporation and Culver Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Net cash provided by operating activities Capital expenditures Dividends paid on common stock Weighted average number of shares outstanding Flint Corporation 2017 $2,376,000 1,551,000 373,560 11,880 112,200 441,100 702,240 87,549 143,220 182,160 118,800 47,520...
Question 4 3 pts Which of the following debt instruments are issued by a company in...
Question 4 3 pts Which of the following debt instruments are issued by a company in the Money Markets to finance working capital investments (short term) - like inventory to sell to customers? O A. Corporate notes or bonds (long-term debt securities w/ greater than 1 year) A. Corporate notes or bonds (long-term debt securities w/ greater than 1 year) B. Short-term debt from financial institutions (ie" bank line of credit) C. Commercial paper issued by the company. D. Treasury...
Statement of Cash Flows (Indirect Method) The Wolff Company's income statement and comparative balance sheets at...
Statement of Cash Flows (Indirect Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2016 and 2015 are shown below: ce WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 86,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 12,000 Income Tax Expense 29,000 582,000 Net Income $63,000 We were unable to transcribe this imageRequired a. Calculate the change in cash that occurred...
Right Way Movers has interest expense of $168, total revenues of $38,411, costs of $28,515, depreciation...
Right Way Movers has interest expense of $168, total revenues of $38,411, costs of $28,515, depreciation of $306, and taxes of $1,979. The beginning balance sheet has total assets of $48,354, net fixed assets of $31,202, current liabilities of $14,207, and total liabilities of $29,407. The ending balance sheet shows total assets of $49,305, net fixed assets of $33,406, current liabilities of $17,318, and total liabilities of $30,404. What is the annual cash flow of the firm?
Assume that Galena Company's income statement showed depreciation expense of $10,000, a on sale of investments...
Assume that Galena Company's income statement showed depreciation expense of $10,000, a on sale of investments of $7,000, and a net income of $51,000. (a) Calculate the cash flow from operating activities using the indirect method and (b) compute Galena's operating-cash-flovw capital-expenditures ratio. gain ow-to- B Cash Flow from Operating Activities (Indirect Method) Cairo Company had a $24,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $5,000 was de. clared and paid. The...
Question 9 Comparative financial statement data for Ivanhoe Company and Sheridan Company, two competitors, appear below....
Question 9 Comparative financial statement data for Ivanhoe Company and Sheridan Company, two competitors, appear below. All balance sheet data are as of December 31, 2017 Ivanhoe Company 2017 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Net cash provided by operating activities Capital expenditures Dividends paid on common stock Weighted average number of shares outstanding $2,664,000 1,739,000 418,840 13,320 125,800 473,900 787,360 98,161 160,580 204,240...
Income Statement Sales $198,520 Costs Except Depreciation (99,010) EBITDA $99,510 Depreciation (6,080) EBIT $93,430 Interest Expense...
Income Statement Sales $198,520 Costs Except Depreciation (99,010) EBITDA $99,510 Depreciation (6,080) EBIT $93,430 Interest Expense (net) (440) Pretax Income $92,990 Income Tax (23,248) Net Income $69,742 Balance Sheet Assets Cash and Equivalents $15,020 Accounts Receivable 1,940 Inventories 4,090 Total Current Assets $21,050 Property, Plant and Equipment 10,000 Total Assets $31,050 Liabilities and Equity Accounts Payable $1,410 Debt 4,080 Total Liabilities $5,490 Stockholders' Equity 25,560 Total Liabilities and Equity $31,050 Jim's Espresso expects sales to grow by 10.1% next...
11. The statement of financial position identity is written out as: 65 (5 Points) a. Costs = Benefits b. Assets = Liabilities + Owners' Equity c. Net Income = Revenues Expenses d. Cash Flow = Net Income + Depreciation e. Net Working Capital = Current Assets - Current Liabilities
Question3 5 pts Consider the following information from Snuggie Corp.'s most recent Income Statement. Net Sales were $989, Operating Costs (excluding depreciation) were $203, and Depreciation and Amortization Expense was $161. The firm's Interest Expense for the year was $75, and the firm's marginal tax rate is 35%. The firm's Or ating Cash Flow for the year is $ . Margin of error for correct responses: /-5.0 Round your answer to 2 decimal places (example: if your answer is 546.345...
Comparative financial statement data for Flint Corporation and Culver Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Net cash provided by operating activities Capital expenditures Dividends paid on common stock Weighted average number of shares outstanding Flint Corporation 2017 $2,376,000 1,551,000 373,560 11,880 112,200 441,100 702,240 87,549 143,220 182,160 118,800 47,520...
Question 4 3 pts Which of the following debt instruments are issued by a company in the Money Markets to finance working capital investments (short term) - like inventory to sell to customers? O A. Corporate notes or bonds (long-term debt securities w/ greater than 1 year) A. Corporate notes or bonds (long-term debt securities w/ greater than 1 year) B. Short-term debt from financial institutions (ie" bank line of credit) C. Commercial paper issued by the company. D. Treasury...
Statement of Cash Flows (Indirect Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2016 and 2015 are shown below: ce WOLFF COMPANY Income Statement For the Year Ended December 31, 2016 Sales Revenue $645,000 Cost of Goods Sold $430,000 Wages Expense 86,000 Insurance Expense 12,000 Depreciation Expense 13,000 Interest Expense 12,000 Income Tax Expense 29,000 582,000 Net Income $63,000 We were unable to transcribe this imageRequired a. Calculate the change in cash that occurred...
Assume that Galena Company's income statement showed depreciation expense of $10,000, a on sale of investments of $7,000, and a net income of $51,000. (a) Calculate the cash flow from operating activities using the indirect method and (b) compute Galena's operating-cash-flovw capital-expenditures ratio. gain ow-to- B Cash Flow from Operating Activities (Indirect Method) Cairo Company had a $24,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $5,000 was de. clared and paid. The...
Question 9 Comparative financial statement data for Ivanhoe Company and Sheridan Company, two competitors, appear below. All balance sheet data are as of December 31, 2017 Ivanhoe Company 2017 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Net cash provided by operating activities Capital expenditures Dividends paid on common stock Weighted average number of shares outstanding $2,664,000 1,739,000 418,840 13,320 125,800 473,900 787,360 98,161 160,580 204,240...
Most questions answered within 3 hours.
-
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 1 hour ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 2 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 2 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 2 hours ago -
Assume memory access is 10 units of time and disk access is
10000 units of time....
asked 3 hours ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 3 hours ago -
Under all the various types of market structures, firms
must eventually earn some economic profits for...
asked 3 hours ago -
Consider the following fitness regime for a single locus trait
with two co-dominant alleles: w11 =...
asked 3 hours ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 3 hours ago -
Please answer the question in brief.
Discuss the role of ERP in organizations. Are ERP tools...
asked 3 hours ago -
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 3 hours ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 3 hours ago