Homework Answers
Solution:-
EBIT = $512 million
Depreciation =$201 million
Tax= 30% or 0.3
So, operating cash flow = EBIT(1-Tax rate)+ depreciation
= $512 million(1-0.3) + $201 million
= $358.4 million + $201 million
= $559.4 million
We are given free cash flow of $425 million
Free cash flow = operating cash flow - investment in operating capital
$425 million = $529.4 million - investment in operating capital
So, investment in operating capital = $ 529.4 million - $425 million
= $134.4 million
And we know that investment in operating capital for the year 2021 is total of investment in fixed asset and investment in working capital
So, investment in operating capital = change in gross fixed assets + change in net operating working capital
= $134.4 million = ( $1,833 - $1582) million +( ending net working capital - $421 million)
=$134.4 million = $251million - $421 million + ending net working capital
= ($134.4 - $251+ $421) million = ending net working capital
= $304.4 million = ending net working capital
$304.4 million is the year end net working capital
Add Answer to:
Problem 2-33 Free Cash Flow (LG2-5) The 2021 income statement for Duffy's Pest Control shows that...
newconnect.mheducation.com Chapter 5 Recent Casas Notificat. Breakout - S al i gnment Sales Monica Mas Decided...
newconnect.mheducation.com Chapter 5 Recent Casas Notificat. Breakout - S al i gnment Sales Monica Mas Decided th Help Save & Exit Check my The 2018 Income statement for Dully's Pest Control shows that depreciation expense was $195 million, EBIT was $500 million, and the tax rate was 36 percent. At the beginning of the year, the balance of gross foued assets was $1,570 million and net operating working capital was $415 million. At the end of the year, gross fixed...
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $99 million, NOPAT...
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $99 million, NOPAT is $296 million. At the end of the year, the balance of gross fixed assets was $745 million. The change in net operating working capital during the year was $89 million Egyptian's free cash flow for the year was $275 million Calculate the beginning of year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $94 million, NOPAT...
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $94 million, NOPAT is $281 million. At the end of the year, the balance of gross fixed assets was $720 million. The change in net operating working capital during the year was $84 million. Egyptian's free cash flow for the year was $250 million. Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $98 million, NOPAT...
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $98 million, NOPAT is $293 million. At the end of the year, the balance of gross fixed assets was $740 million. The change in net operating working capital during the year was $88 million. Egyptian's free cash flow for the year was $270 million. Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
Problem 2-39 Free Cash Flow (LG2-5) Rebecky's Flowers 4U, Inc., had free cash flows during 2021...
Problem 2-39 Free Cash Flow (LG2-5) Rebecky's Flowers 4U, Inc., had free cash flows during 2021 of $61 million, NOPAT of $125 million, and depreciation of $15 million. Using this information, fill in the blanks on Rebecky's balance sheet below. (Enter your answers in millions of dollars.) 2021 2020 Assets Current assets: Cash and marketable securities Accounts receivable 37 $ 50 75 Inventory REBECKY'S FLOWERS 4U, INC. Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars)...
Problem 2-11 Statement of Cash Flows (LG2-4) Ramakrishnan, Inc., reported 2021 net income of $20 million...
Problem 2-11 Statement of Cash Flows (LG2-4) Ramakrishnan, Inc., reported 2021 net income of $20 million and depreciation of $2,700,000. The top part of Ramakrishnan, Inc.'s, 2021 and 2020 balance sheets is reproduced below (in millions of dollars): 2021 2020 2021 2020 Current assets: Cash and marketable securities Accounts receivable Inventory Total $ 25 85 139 $249 $ 12 78 116 $206 Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total $ 24 73 65 $162 $ 21...
Vinny’s Overhead Construction had free cash flow during 2015 of $36.1 million. The change in gross...
Vinny’s Overhead Construction had free cash flow during 2015 of
$36.1 million. The change in gross fixed assets on Vinny’s balance
sheet during 2015 was $3.0 million and the change in net operating
working capital was $4.0 million.
Calculate the missing amounts on Vinny’s income statement below.
(Enter your answers in millions of dollars rounded to 2
decimal places. Input all amounts as positive values.)
VINNY'S OVERHEAD CONSTRUCTION, CORP Income Statement for Year Ending December 31, 2015 (in millions of...
3-7: Free Cash Flow Problem Walk-Through Free Cash Flow Bailey Corporation's financial statements (dollars and shares...
3-7: Free Cash Flow Problem Walk-Through Free Cash Flow Bailey Corporation's financial statements (dollars and shares are in millions) are provided here Balance Sheets as of December 31 2014 2013 Assets $14,000 25,000 22,505 $61,505 49,000 $110,505 Cash and equivalents Accounts receivable Inventories $ 11,000 20,000 17,000 $ 48,000 45,000 $93,000 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals 10,500 6,900 7,500 $24,900 10,000 34,900 $9,000 5,100 6,000 $ 20,100 10,000...
Free Cash Flow You are considering an investment in Crew Cut, Inc. and want to evaluate...
Free Cash Flow You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Crew Cut eamed an EBIT of $23.09 million, paid taxes of $3.91 million, and its depreciation expense was $7.91 million. Crew Cut's gross fixed assets increased by $10.09 million from 2007 to 2008. The firm's current assets increased by $6.09 million and spontaneous current liabilities increased by $3.91 million. What is Crew...
SP Problem 2-28 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below....
SP Problem 2-28 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below. Current asseta cash and marketable securities Accounts receivable Inventory Total Fixed aastai Gross plant and equipment Lessi Necumulated depreciation Net plant and equipment Other long-term assets VALTUN'S KEDICAL SUPPLY CORPORATION Balance sheet of December 31, 2010 and 2017 in thousands of dollars). 2017 Llabilities and Equity Current liabilities: 72 71 Meered wages and taxes 181 Accounts payable 221 Notes payable $ 521 543 Long-tem...
newconnect.mheducation.com Chapter 5 Recent Casas Notificat. Breakout - S al i gnment Sales Monica Mas Decided th Help Save & Exit Check my The 2018 Income statement for Dully's Pest Control shows that depreciation expense was $195 million, EBIT was $500 million, and the tax rate was 36 percent. At the beginning of the year, the balance of gross foued assets was $1,570 million and net operating working capital was $415 million. At the end of the year, gross fixed...
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $99 million, NOPAT is $296 million. At the end of the year, the balance of gross fixed assets was $745 million. The change in net operating working capital during the year was $89 million Egyptian's free cash flow for the year was $275 million Calculate the beginning of year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $94 million, NOPAT is $281 million. At the end of the year, the balance of gross fixed assets was $720 million. The change in net operating working capital during the year was $84 million. Egyptian's free cash flow for the year was $250 million. Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
The 2021 income statement for Egyptian Noise Blasters shows that depreciation expense is $98 million, NOPAT is $293 million. At the end of the year, the balance of gross fixed assets was $740 million. The change in net operating working capital during the year was $88 million. Egyptian's free cash flow for the year was $270 million. Calculate the beginning-of-year balance for gross fixed assets. (Enter your answer in millions of dollars.) Gross fixed assets million
Problem 2-39 Free Cash Flow (LG2-5) Rebecky's Flowers 4U, Inc., had free cash flows during 2021 of $61 million, NOPAT of $125 million, and depreciation of $15 million. Using this information, fill in the blanks on Rebecky's balance sheet below. (Enter your answers in millions of dollars.) 2021 2020 Assets Current assets: Cash and marketable securities Accounts receivable 37 $ 50 75 Inventory REBECKY'S FLOWERS 4U, INC. Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars)...
Problem 2-11 Statement of Cash Flows (LG2-4) Ramakrishnan, Inc., reported 2021 net income of $20 million and depreciation of $2,700,000. The top part of Ramakrishnan, Inc.'s, 2021 and 2020 balance sheets is reproduced below (in millions of dollars): 2021 2020 2021 2020 Current assets: Cash and marketable securities Accounts receivable Inventory Total $ 25 85 139 $249 $ 12 78 116 $206 Current liabilities: Accrued wages and taxes Accounts payable Notes payable Total $ 24 73 65 $162 $ 21...
Vinny’s Overhead Construction had free cash flow during 2015 of
$36.1 million. The change in gross fixed assets on Vinny’s balance
sheet during 2015 was $3.0 million and the change in net operating
working capital was $4.0 million.
Calculate the missing amounts on Vinny’s income statement below.
(Enter your answers in millions of dollars rounded to 2
decimal places. Input all amounts as positive values.)
VINNY'S OVERHEAD CONSTRUCTION, CORP Income Statement for Year Ending December 31, 2015 (in millions of...
3-7: Free Cash Flow Problem Walk-Through Free Cash Flow Bailey Corporation's financial statements (dollars and shares are in millions) are provided here Balance Sheets as of December 31 2014 2013 Assets $14,000 25,000 22,505 $61,505 49,000 $110,505 Cash and equivalents Accounts receivable Inventories $ 11,000 20,000 17,000 $ 48,000 45,000 $93,000 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals 10,500 6,900 7,500 $24,900 10,000 34,900 $9,000 5,100 6,000 $ 20,100 10,000...
Free Cash Flow You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Crew Cut eamed an EBIT of $23.09 million, paid taxes of $3.91 million, and its depreciation expense was $7.91 million. Crew Cut's gross fixed assets increased by $10.09 million from 2007 to 2008. The firm's current assets increased by $6.09 million and spontaneous current liabilities increased by $3.91 million. What is Crew...
SP Problem 2-28 Statement of Cash Flows (LG2-5) Use the balance sheet and income statement below. Current asseta cash and marketable securities Accounts receivable Inventory Total Fixed aastai Gross plant and equipment Lessi Necumulated depreciation Net plant and equipment Other long-term assets VALTUN'S KEDICAL SUPPLY CORPORATION Balance sheet of December 31, 2010 and 2017 in thousands of dollars). 2017 Llabilities and Equity Current liabilities: 72 71 Meered wages and taxes 181 Accounts payable 221 Notes payable $ 521 543 Long-tem...
Most questions answered within 3 hours.
-
3.11 (Modified Account Class) Modify class Account (Fig. 3.8 )
to
provide a method called withdraw...
asked 35 seconds from now -
If a company repurchases shares, then the proportionate
shareholdings of shareholders who do NOT participate
A....
asked 8 minutes ago -
12.56 The SN2 reaction can occur intramolecularly (within the
same mol- ecule). What product would you...
asked 8 minutes ago -
1. For your column to work properly, it is very important that
you do not put...
asked 7 minutes ago -
Which of the following statements accurately defines
neuroglial cell?
A.
Central area of the cell containing...
asked 10 minutes ago -
7.4) A 860 MW power plant uses steam at 600 K as its input heat
and...
asked 12 minutes ago -
The joining of two
amino acids via a peptide bond (the process of protein synthesis)
has...
asked 21 minutes ago -
9. Approximately 75% of statistics students do their homework on
time for it to be collected...
asked 28 minutes ago -
Analyze the value chain analysis of your favorite company and
describe the strengths and how they...
asked 27 minutes ago -
Which of the following is a tolerogenic cytokine?
A)
TGF-B
B)
IL-1
C) IL-10
D)Both TGF-B...
asked 51 minutes ago -
1. A decade ago, the idea that medical procedures might move
offshore was unthinkable. Today it...
asked 46 minutes ago -
what kind of constraints have cost -benefit tradeoff problems?
less than or equal
greater or equal...
asked 53 minutes ago