Question

For this and the next 5 questions, please refer to the following Table. Data in millions of dollars. What is the net operating profit after taxes (NOPAT) for YEAR Income Statement Year 1 Year 2 Sales Operating costs excl depreciation Depreciation EBIT Less: Interest EBT Taxes (40%) Net income to common Common dividends s 1,200.0 $1,000.0 1,020.0 850.0 30.0 25.0 125.0 21.7 20.2 104.8 51.341.9 77,0 62,9 150.0 128.3 60.5 ASSETS İt to save and submit. Click Save AllAnsuers to save all

Answer 1

Q-2)	NOWC for Year 1	192
Q-3)	NOWC for Year 2	210
Q-4)	TOC for Year 1	492
Q-5)	TOc for Year 2	460
Q-6)	FCF for Year 2	15.1
	Net operating working capital:	Year 1	Year 2
	Cash and cash equivalents	12	10
	Accounts receivable	180	150
	Inventories	180	200
	Total operating current assets	372	360
	Accounts payable	108	90
	Accruals	72	60
	Total operating current liabilities	180	150
	Net operating working capital	192	210
	Net plant and equipment	300	250
	Total operating capital	492	460
	NI		62.9
	Add: Depreciation		25.0
	Add: Interest		20.2
	Operating cash flow		108.1
	Less: Net capital spending = 300-250+25 =		75.0
	Less: Change in NWC = (360-150)-(372-180) =		18.0
	FCF		15.1
	Options given for FCF are wrong