Question

Financial Statements to answer questions, showing calculations:

BALANCE SHEETS 2016 2015 2,720 2,860 100 Use the following financial statements to answer questions (Dollars are stated in $m

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Cash flow from firm or Free Cash flow from Firm = Operating cash flow - Change in Net Working Capital - Net Capital Spending

- Operating cash flow = EBIT(1-Tax rate) + Depreciation

Tax Rate = taxes/taxable Income = $455/$1300 = 35%

Operating cash flow of 2016 = $1930(1-0.35) + $1370

= $ 2624.5

- Change in Net Working Capital = Net Working Capital of 2016 - Net Working Capital of 2015

Net Working Capital = Current Assets - accounts Payable (Notes Payable is not part of Working Capital)

Change in Net Working Capital of 2016 = ($7310 -$2860) - ($6225 -$2720) = $4450 - $3505

= $945

- Net Capital Spending of 2016 = Net Fixed assets of 2016 + depreciation of 2016 - Net Fixed assets of 2015

= $10670 +$1370 - $10960

= $ 1080

Cash flow from firm of 2016 = $2624.5 - $945 -$1080

= $ 599.5

If you need any clarification, you can ask in comments.

If you like my answer, then please up-vote as it will be motivating

Add a comment
Know the answer?
Add Answer to:
Financial Statements to answer questions, showing calculations: BALANCE SHEETS 2016 2015 2,720 2,860 100 Use the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • What is the cash flow to creditors for 2016? showing calculations BALANCE SHEETS 2016 2,860 310...

    What is the cash flow to creditors for 2016? showing calculations BALANCE SHEETS 2016 2,860 310 Use the following financial statements to answer questions (Dollars are stated in $millions) INCOME STATEMENT 2015 2016 2015 2016 Net Sales 8,360 9,610 Cash 405 Cost of goods sol 5,247 6,310 Accounts rec. 2,640 3,055 Depreciation 1,340 1,370 Inventory 3,275 3,850 EBIT 1,773 1,930 Current assets 6,225 7,310 Interest 620 630 Net fixed assets 10,960 10,670 Taxable income 1,153 1,300 Taxes 403 Total assets...

  • Prepare a forecast, showing any calculations BALANCE SHEETS 2016 2,860 0 Use the following financial statements...

    Prepare a forecast, showing any calculations BALANCE SHEETS 2016 2,860 0 Use the following financial statements to answer questions (Dollars are stated in $millions) INCOME STATEMENT 2015 2016 2015 2016 Net Sales 8,360 9,610 Cash 310 405 Cost of goods sol 5,247 6,310 Accounts rec. 2,640 3,055 Depreciation 1,340 1,370 Inventory 3,275 3,850 EBIT 1,773 1,930 Current assets 6,225 7,310 Interest 620 630 Net fixed assets 10,960 10,670 Taxable income 1,153 1,300 Taxes 403 455 Total assets 17,185 17,980 Net...

  • Financial Statements Questions Showing Calculations for each: BALANCE SHEETS 2016 2,860 1. Use the following financial...

    Financial Statements Questions Showing Calculations for each: BALANCE SHEETS 2016 2,860 1. Use the following financial statements to answer questions (Dollars are stated in $millions) INCOME STATEMENT 2015 2016 2015 2016 Net Sales 8,360 9,610 Cash 310 405 Cost of goods sol 5,247 6,310 Accounts rec. 2,640 3,055 Depreciation 1,340 1,370 Inventory 3.275 3,850 EBIT 1,773 1,930 Current assets 6,225 7,310 Interest 620 630 Net fixed assets 10,960 10,670 Taxable income 1,153 1,300 Taxes 403 455 Total assets 17,185 17,980...

  • Using spread sheets above: 1) What is the Sustainable Growth Rate? 2) What is the Internal...

    Using spread sheets above: 1) What is the Sustainable Growth Rate? 2) What is the Internal Growth Rate? 3) What is the ROE? 4) What is the ROA? 5) What is the Profit Margin? 2019 2,570 2018 2,820 Current Assets Cash Accounts Receivable Inventory Total 8,100 7,875 Balance Sheet ($ in millions) 2019 2018 Current Liabilities 405 310 3,055 2,640 Long-term Debt 3,850 3,275 Owner's Equity 7,310 6.225 Common Stock 10,670 10,960 Retained Earnings Total 17,980 17,185 Total Liabilities and...

  • Use the information provided to answer the questions regarding Nabors, Inc. Quiz 2 part 1 (10...

    Use the information provided to answer the questions regarding Nabors, Inc. Quiz 2 part 1 (10 points). Using the following income statement and balance sheet prepare the financial statement of cash flow (format it on the next page) and submit it via dropbex by 01/28/2018 Nabors, Inc. 2011 Income Statement (S in millions) $9,610 6,310 Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income 370 1,930...

  • Merkitch Company's condensed comparative income statements and comparative balance sheets for 2016 and 2015 follow. Merkitch...

    Merkitch Company's condensed comparative income statements and comparative balance sheets for 2016 and 2015 follow. Merkitch Company Comparative Income Statements For the Years Ended December 31, 2016 and 2015 Increase (Decrease) 2016 2015 Amount of ChagePercentage $3,276,800 Net sales Cost of goods sold Gross profit Operating expenses $3,146,400 2,008,400 $1,138,000 $1,188,000 $476,800 447,200 5924,000 5264,000 55,600 $198,400 62,400 136,000 518,000 423,200 941,200 $196,800 39,200 157,600 56,800 100,800 Seling expenses Administrative expenses Total operating expenses Net operating income Interest expense Income...

  • Consider the following abbreviated financial statements for Pinghua: PINGHUA 2014 and 2015 Partial Balance Sheets Assets...

    Consider the following abbreviated financial statements for Pinghua: PINGHUA 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015   Current assets $ 1,850 $ 2,100 Current liabilities $ 740 $ 860   Net fixed assets 7,850 9,120 Long-term debt 4,000 4,300 Equity 4,960 6,060 PINGHUA 2015 Income Statement Info   Sales $ 11,300   Costs 5,500   Depreciation 1,000   Interest paid 200 The tax rate is 35%. Long term debt trades at 112% of par. The firm has 500...

  • Balance sheets and income statements for Nordstrom, Inc., follow. Refer to these financial statements to answer the requ...

    Balance sheets and income statements for Nordstrom, Inc., follow. Refer to these financial statements to answer the requirements. Nordstrom, Inc. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) 2016 2015 2014 Net Sales $14,095 $13,110 $12,166 Credit card revenues 342 396 374 Total revenues 14,437 13,506 12,540 Cost of sales and related buying and occupancy costs (9,168) (8,406) (7,737) Selling, general and administrative expenses (4,168) (3,777) (3,453) Earnings before interest and income taxes 1,101 1,323 1,350 Interest expense,...

  • Balance Sheets as of December 31 2016 2015 $ 14,000 1 Cash and equivalents Accounts receivable...

    Balance Sheets as of December 31 2016 2015 $ 14,000 1 Cash and equivalents Accounts receivable Inventories 12,000 25,000 23,000 $71.705 60,000 48,000 $120,705 $108,000 30,000 27,705 Total current assets Net plant and equipment Total assets 49,000 Liabilities and Equity $ 10.9008,500 7,000 5.050 s 25,20020,550 20,000 s 45.200 40.550 40,000 27.450 $75.5055 67450 $108.000 Accounts payable 7.500 Notes payable 6.800 Total current liabilities Long-term bonds 20,000 Total liabilities Common stock (4,000 shares) Retained earnings 40,000 Common equity Total liabilities...

  • Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents Accounts receivable Inventories s13,000...

    Balance Sheets as of December 31 2016 2015 Assets Cash and equivalents Accounts receivable Inventories s13,000 35,000 34,620 82,620 50,000 $132,620 s 12,000 25,000 22,000 59,000 49,000 $108,000 Total current assets Net plant and equipment Total assets Enter your answers in millions. For example, an answer of $25,000,00D,000 should be entered as 25,000. a. What was net operating working capital for 2015 and 20167 2015 S million Liabiwties and Equity Accounts payable Accruals Notes payable 2016 million 10,800 8,000 6,200...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT