Question

a) what net operating working capital for 2014 and 2015

b) whaz was Jamison 2015 free cash flow

c) construct Jamison 2015 statement of stockholder's equity.

EXHIBITS: INPUT DATA (for D'Leon) Table IC3.1 Balance Sheets 2015 2014 $ Assets Cash Accounts receivable Inventories Total current assets Gross fixed assets Less: accumulated depreciation Net fixed assets Total assets 7,282 $ 57,600 632,160 351,200 1,287,360 715,200 $ 1,926,802 $1,124,000 1,202,950 491,000 263,160 146,200 $ 939,790 $ 344,800 $ 2.866.592 $1,468,800 + Liabilities and equity $ Accounts payable 524,160 $ 145,600 Notes payable 636,808 200,000 489,600 136,000 3 Accruals 4 Total current liabilities $ 1,650,568 $ 481,600 723,432 323.432 5 Long term debt 6 Total debt $ 2,374,000 $ 805,032 27 Common stock (100,000 shares) 460,000 460,000 28 Retained earnings 32,592 203,768 29 Total common equity $ 492,592 $ 663,768 30 Total liabilities and equity $2.866,592 51,468,800 31 32 Table IC3.2 Income Statements 2015 2014 33 34 Sales $ 6,034,000 $3,432,000 35 Cost of goods sold 5,528,000 2,864,000 36 Other expenses 519,988 358,672 37 Total operating exp. excl. depreciation and amortization $ 6,047,988 $3,222,672 38 Depreciation and amortization 116,960 18.900 39 Earnings before interest and taxes (EBIT) $ (130,948) $ 190,428 40 Interest expense 136,012 43,828 41 Earnings before taxes (EBT) $ (266,960) $ 146,600 42 Taxes (40%) (106,784 58,640 43 Net income $ (160,176 $ 87,960 44 45 EPS $ (1.602) 5 0.880 46 DPS $0.11 $0.22 47 Book value per share 5 4.926 5 6.638 48 Stock price $ 2.25 5 8.50 49 Shares outstanding 100,000 100,000 50 Tax rate 40.00% 40.00% 51 Lease payments $ 40,000 5 40,000 52 Sinking fund payments 0 53 54 Table 1C3.3 Statement of Stockholders' Equity, 2015 55 Common Stock Total 56 Retained Stockholders' 57 Shares Amount 58 Balances, Dec 31, 2014 Earnings 100.000 5 460,000 5 203,768 5 59 Add: Net Income, 2015 663,768 00 Less: Dividends to common stockholders (160,176) 61 Addition (Subtraction to Retained Earnings (11,000) 62 Balances, Dec. 31, 2015 100.000 $ 460,000 $ (171.176) 3 32.552 492.592 03 fase model Equity

Answer 1

E חד G H A B D 1 1. Working Capital= Current Assets- Current Liabilities 2 2014 2015 3 Current Assets 1124000 1926802 4 Current Liabilities 481600 1650568 5 Working capital 642400 276234 6 7 2. Free cash flow= EBIT- Interest-Tax+depreciation change in working capital-capex+net borrowing 8 EBIT -130948 9 (-) interest -136012 110 (-) Tax6 -106784 11 (+) depreciation 116960 12 (-) change in WC -366166 13 (-) capex -828910 (Opening fixed assets+purchases-depreciation=closing fixed assets) 14 (+) borrowing 836808 15 Dividend -11000 16 FCF -626052 17 3. Stockholder's equity Common Retained 18 stock earning Total 19 Opening Balance 460000 203768 663768 20 Net income -160176 -160176 21 Less: Dividends -11000 -11000 22 Closing Balance 460000 32592 492592 73