ZuoTi.Pro
Question

Champagne, Inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 million during 2008. The firm purchased $700,000 of equipment during the year while increasing its inventory by $500,000 (with no corresponding increase in current liabilities). The marginal tax rate for Champagne is 30 percent. Free cash flow: What is Champagnes cash flow from operations for 2008? $3,250,000 $4,000,000 $2,500,000 $2,050,000not sure how to do this

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
not sure how to do this Champagne, Inc., had revenues of $12 million, cash operating expenses...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Amsted, Inc. is considering a project that will increase revenues by $2.5 million, cash operating expenses...

    Amsted, Inc. is considering a project that will increase revenues by $2.5 million, cash operating expenses by $700,000, and depreciation and amortization by $300,000 during 2011. For this project, the firm will purchase $800,000 of equipment during the year while decreasing its inventory by $200,000 (with no corresponding decrease in current liabilities). The marginal tax rate for Amsted is 35 percent. What is this project’s incremental after-tax free cash flow for 2011? A. 475,000 B. 975,000 C. 675,000 D. 275,000

  • What is the free cash flow of a firm with revenues of $343 million, operating profit...

    What is the free cash flow of a firm with revenues of $343 million, operating profit margin of 36%, tax rate of 31%, depreciation and amortization expense of $23 million, capital expenditures of $37 million, acquisition expenses of $6 million and change in net working capital of $17 million? Answer in millions, rounded to one decimal place (e.g., $245.63 = 245.6).

  • What is the free cash flow of a firm with revenues of $386 million, operating profit...

    What is the free cash flow of a firm with revenues of $386 million, operating profit margin of 31%, tax rate of 34%, depreciation and amortization expense of $21 million, capital expenditures of $39 million, acquisition expenses of $5 million and change in net working capital of $19 million? Answer in millions, rounded to one decimal place (e.g., $245.63 = 245.6).

  • What is the free cash flow of a firm with revenues of $386 million, operating profit...

    What is the free cash flow of a firm with revenues of $386 million, operating profit margin of 31%, tax rate of 34%, depreciation and amortization expense of $21 million, capital expenditures of $39 million, acquisition expenses of $5 million and change in net working capital of $19 million? Answer in millions, rounded to one decimal place (e.g., $245.63 = 245.6).

  • What is the free cash flow of a firm with revenues of $271 million, operating profit...

    What is the free cash flow of a firm with revenues of $271 million, operating profit margin of 43%, tax rate of 25%, depreciation and amortization expense of $26 million, capital expenditures of $34 million, acquisition expenses of $8 million and change in net working capital of $14 million? Answer in millions, rounded to one decimal place (e.g., $245.63 = 245.6).

  • XYZ Company, a 'for-profit' business, had revenues of $12 million in 2016. Expenses other than depreciation...

    XYZ Company, a 'for-profit' business, had revenues of $12 million in 2016. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $1.5 million; however, now the company has decided to be more conservative in its depreciation of its capital assets. XYZ now has...

  • I am not sure if the above information is needed QUESTION: Miami Rivet had $12 million...

    I am not sure if the above information is needed QUESTION: Miami Rivet had $12 million in net plant and equipment the prior year. Its net operating working capital has remained constant over time. What is the company’s free cash flow (FCF) for the year that just ended? Note that capital expenditures are equal to the change in net plant and equipment plus the annual depreciation expense. Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation...

  • Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...

    Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...

  • 2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabiliti...

    2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days Accounts Receivable 1 Low ST liquidity risk high Low ST liquidity risk 0.4 Low ST liquidity risk Current Assets/ Current Liabilities (Cash+ShortTermInvestments+AccountsReceivable Current Liabilities Operating Cash Flow/0.5(Current Liabilities-2Year) 365/Accounts Receivable Turnover Ratio Accounts Receivable Turnover-Sales 0.5(Accounts Receivable-2Year) 565 Inventory lurnover Ratio Inventory Turnover Ratio Costs of Goods Sold'0.5(Inventory-2Year) 365/Accounts Payable Tumover Ratio Accounts Payable Turnover-Purchase 0.5(Accounts Payable-2Year) Purchase-Cost of Goods Sold+Ending Inventory-Beginning Inventory Days...

  • 2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days...

    2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days Accounts Receivable 1 Low ST liquidity risk high Low ST liquidity risk 0.4 Low ST liquidity risk Current Assets/ Current Liabilities (Cash+ShortTermInvestments+AccountsReceivable Current Liabilities Operating Cash Flow/0.5(Current Liabilities-2Year) 365/Accounts Receivable Turnover Ratio Accounts Receivable Turnover-Sales 0.5(Accounts Receivable-2Year) 565 Inventory lurnover Ratio Inventory Turnover Ratio Costs of Goods Sold'0.5(Inventory-2Year) 365/Accounts Payable Tumover Ratio Accounts Payable Turnover-Purchase 0.5(Accounts Payable-2Year) Purchase-Cost of Goods Sold+Ending Inventory-Beginning Inventory Days...

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