Balto Moving and Storage, Inc. generates the following income statement for the year. In addition, the...
Balto Moving and Storage, Inc. generates the following income statement for the year. In addition, the company has a net reduction in working capital of $2,150 and spends $2,975 on new capital projects.
| Income Statement | |||
| Net sales | $ | 7,500.00 | |
| Cost of goods sold | 1,600.00 | ||
| Depreciation | 750.00 | ||
| EBIT | $ | 5,150.00 | |
| Interest expense | 1,250.00 | ||
| Taxable income | $ | 3,900.00 | |
| Taxes | 1,170.00 | ||
| Net income | $ | 2,730.00 | |
a. What is the company’s cash flow from operations? (Round your answer to the nearest dollar.)
b. What is the company’s free cash flow? (Round your answer to the nearest dollar.)
Homework Answers
Solution: a
Calculation of Company's cash flow from operations:
| Particulars | Amount |
| Net Income | $2,730 |
| Add: Non-Cash Expense (Depreciation) | $750 |
| Add: Decrease in Working capital | $2,150 |
| Cash flow from Operations | $5,630 |
Solution: b
Calculation of Company's free cash flow:
Free cash flow = Cash flow from Operations - Capital Expenditure
= $5,630 - $2,975
= $2,655
Add Answer to:
Balto Moving and Storage, Inc. generates the following income
statement for the year. In addition, the...
Income statement. From the following income statement accounts in the popup window, a. produce the income...
Income statement. From the following income statement accounts in the popup window, a. produce the income statement for the year. b. produce the operating cash flow for the year. a. produce the income statement for the year. Complete the income statement below. (Round to the nearest dollar.) Income Statement Year Ending December 31, 2017 EBIT Taxable income Net Income b. produce the operating cash flow for the year. The operating cash flow for the year is $ . (Round to...
(Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement...
(Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement Accounts for the Year Ending 2017 Account Balance Cost of goods sold $341,000 Interest expense $82,000 Taxes $56,800 Revenue $744,000 Selling, general, and administrative expenses $62,000 Depreciation $117,000 a. produce the income statement for the year. Complete the income statement below. (Round to the nearest dollar.) Income Statement Year Ending December 31, 2017 $ $ $ EBIT $ $ Taxable income $ $ Net...
Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement...
Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement Accounts for the Year Ending 2017 Account Balance Cost of goods sold $341,000 Interest expense $82,000 Taxes $56,800 Revenue $744,000 Selling, general, and administrative expenses $62,000 Depreciation $117,000 Print Done produce the income statement for the year. omplete the income statement below. (Round to the nearest dollar) Income Statement Year Ending December 31, 2017 $ $ $ EBIT $ $ Taxable income $ $...
ho ck on the following icon in order to copy its contents into a spreadsheet.) Income...
ho ck on the following icon in order to copy its contents into a spreadsheet.) Income Statement Accounts for the Year Ending 2017 Account Balance Cost of goods sold $1,424,000 Interest expense $286,000 Taxes $224,000 Revenue $2,984,000 Selling, general, and administrative expenses $451,000 Depreciation $263,000 Print Done el Complete the income statement below. (Round to the nearest dollar.) Income Statement Year Ending December 31, 2017 $ $ EBIT $ $ Taxable income $ $ $ Net income b. produce the...
The income statement and balance sheet for GUS, Inc. are provided below. (Note that the reported...
The income statement and balance sheet for GUS, Inc. are provided below. (Note that the reported figures in the statements are expressed in thousands of dollars.) GUS, INC. Balance Sheets as of December 31, 2018 and 2019 (in 000s) 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 100 $ 175 Accounts payable $ 300 $ 380 Accounts receivable 300 275 Notes payable 500 560 Inventory 450 500 Total $ 850 $ 950 Total...
INCOME STATEMENT Byron Books Inc. recently reported $12 million of net income. Its EBIT was $26.4...
INCOME STATEMENT Byron Books Inc. recently reported $12 million of net income. Its EBIT was $26.4 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the knowrn values. Then divide $12 million of net income by (1-T) 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out...
Delectable Parsnip, Inc.’s, net income for the most recent year was $9,312. The tax rate was...
Delectable Parsnip, Inc.’s, net income for the most recent year was $9,312. The tax rate was 34 percent. The firm paid $3,887 in total interest expense and deducted $5,073 in depreciation expense. What was the company’s taxable income for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Taxable income $ What was the company’s EBIT for the year? (Do not round intermediate calculations and round your answer to 2 decimal places,...
Oakdale Fashions, Inc.’s, 2021 income statement is reported below. Oakdale Fashions, Inc., Income Statement for 2021...
Oakdale Fashions, Inc.’s, 2021 income statement is reported below. Oakdale Fashions, Inc., Income Statement for 2021 Net sales (all credit) $ 565,000 Less: Cost of goods sold 215,000 Gross profits $ 350,000 Less: Other operating expenses 90,000 EBITDA $ 260,000 Less: Depreciation and amortization 15,000 EBIT $ 245,000 Less: Interest 80,000 EBT $ 165,000 Less: Taxes Net income $ Determine the firm's 2021 tax liability. (Round your answer to the nearest dollar amount.) Determine the firm's 2021 net income. (Round...
2. Problem 3.02 (Income Statement) Problem Walk Through Byron Books Inc. recently reported 15 million of...
2. Problem 3.02 (Income Statement) Problem Walk Through Byron Books Inc. recently reported 15 million of net income. Its EBIT was 25.1 million, and its tax rate was 25. What was its interest expense? (Hint: Write out the heading for an income statement, and then fill in the known values. The divide $15 million of net income by( 1 ) 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same...
Graffiti Advertising, Inc., reported the following financial statements for the last two years 2016 Income Statement...
Graffiti Advertising, Inc., reported the following financial statements for the last two years 2016 Income Statement Sales Costs of goods sold Selling and administrative Depreciation EBIT Interest EBT Taxes Net income Dividends Addition to retained earnings $565,700 274,020 124,732 54,575 $112,373 19,318 $ 93,055 37,222 $ 55,833 $ 9,700 $ 46,133 GRAFFITI ADVERTISING, INC Balance Sheet as of December 31, 2015 Cash Accounts receivable Inventory Current assets $ 13,330 Accounts payable $ 9,503 14,507 $ 24,010 18,993 $ 46,118 S344,456...
Income statement. From the following income statement accounts in the popup window, a. produce the income statement for the year. b. produce the operating cash flow for the year. a. produce the income statement for the year. Complete the income statement below. (Round to the nearest dollar.) Income Statement Year Ending December 31, 2017 EBIT Taxable income Net Income b. produce the operating cash flow for the year. The operating cash flow for the year is $ . (Round to...
(Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement Accounts for the Year Ending 2017 Account Balance Cost of goods sold $341,000 Interest expense $82,000 Taxes $56,800 Revenue $744,000 Selling, general, and administrative expenses $62,000 Depreciation $117,000 a. produce the income statement for the year. Complete the income statement below. (Round to the nearest dollar.) Income Statement Year Ending December 31, 2017 $ $ $ EBIT $ $ Taxable income $ $ Net...
Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement Accounts for the Year Ending 2017 Account Balance Cost of goods sold $341,000 Interest expense $82,000 Taxes $56,800 Revenue $744,000 Selling, general, and administrative expenses $62,000 Depreciation $117,000 Print Done produce the income statement for the year. omplete the income statement below. (Round to the nearest dollar) Income Statement Year Ending December 31, 2017 $ $ $ EBIT $ $ Taxable income $ $...
ho ck on the following icon in order to copy its contents into a spreadsheet.) Income Statement Accounts for the Year Ending 2017 Account Balance Cost of goods sold $1,424,000 Interest expense $286,000 Taxes $224,000 Revenue $2,984,000 Selling, general, and administrative expenses $451,000 Depreciation $263,000 Print Done el Complete the income statement below. (Round to the nearest dollar.) Income Statement Year Ending December 31, 2017 $ $ EBIT $ $ Taxable income $ $ $ Net income b. produce the...
The income statement and balance sheet for GUS, Inc. are provided below. (Note that the reported figures in the statements are expressed in thousands of dollars.) GUS, INC. Balance Sheets as of December 31, 2018 and 2019 (in 000s) 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 100 $ 175 Accounts payable $ 300 $ 380 Accounts receivable 300 275 Notes payable 500 560 Inventory 450 500 Total $ 850 $ 950 Total...
INCOME STATEMENT Byron Books Inc. recently reported $12 million of net income. Its EBIT was $26.4 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the knowrn values. Then divide $12 million of net income by (1-T) 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out...
2. Problem 3.02 (Income Statement) Problem Walk Through Byron Books Inc. recently reported 15 million of net income. Its EBIT was 25.1 million, and its tax rate was 25. What was its interest expense? (Hint: Write out the heading for an income statement, and then fill in the known values. The divide $15 million of net income by( 1 ) 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same...
Graffiti Advertising, Inc., reported the following financial statements for the last two years 2016 Income Statement Sales Costs of goods sold Selling and administrative Depreciation EBIT Interest EBT Taxes Net income Dividends Addition to retained earnings $565,700 274,020 124,732 54,575 $112,373 19,318 $ 93,055 37,222 $ 55,833 $ 9,700 $ 46,133 GRAFFITI ADVERTISING, INC Balance Sheet as of December 31, 2015 Cash Accounts receivable Inventory Current assets $ 13,330 Accounts payable $ 9,503 14,507 $ 24,010 18,993 $ 46,118 S344,456...
Most questions answered within 3 hours.
-
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 17 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 24 minutes ago -
. 0.67 g of Ag is deposited electrolytically from
AgNO3 after a certain period of time...
asked 25 minutes ago -
assuming that the boric acid, h3po3 present at the end of the
borax tritation has a...
asked 25 minutes ago -
When a carbonate solution is acidified, carbon dioxide is
produced.
2H+(aq) + CO32-(aq) → H2O(l) +...
asked 1 hour ago -
A reaction has the following rate law: Rate =
kr[A][B]2. In experiment 1, the
concentrations of...
asked 1 hour ago -
king owns a large number of public pay phones. as rhe use of
payphones decline deamatically,...
asked 1 hour ago -
3.7 - A book is sitting on a table. The mass of the book
is 1...
asked 1 hour ago -
Which term describes the process by which a single strand of DNA
serves as a template...
asked 1 hour ago -
LAB FOOD DRING
ANSWER THE QUESTIONS:
Q1. What value is the moisture content versus time and...
asked 1 hour ago -
You are told that an object has zero acceleration. Two forces on
the object are: F_1...
asked 1 hour ago -
The usual starting point for preparing a master budget is
forecasting or estimating:
Multiple Choice
Sales....
asked 1 hour ago