Free Cash Flow Iron Ore Corporation reported free cash flows for 2022 of $114 million and investment in operating capital of $184 million. Iron Ore listed $34 million in depreciation expense and $56 million in taxes on its 2022 income statement. What was Iron Ore's 2022 EBIT? Multiple Choice O $298 million О $388 million O $320 million $148 million

Free Cash Flow Iron Ore Corporation reported free cash flows for 2022 of $114 million and investment in operating capital of $184 million. Iron Ore listed $34 million in depreciation expense and $56 million in taxes on its 2022 income statement. What was Iron Ore's 2022 EBIT? Multiple Choice O $298 million О $388 million O $320 million $148 million

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

See similar textbooks

Similar questions

Free Cash Flow Iron Ore Corporation reported free cash flows for 2022 of $114 million and investment in operating capital of $184 million. Iron Ore listed $34 million in depreciation expense and $56 million in taxes on its 2022 income statement. What was Iron Ore's 2022 EBIT? Multiple Choice о $298 million $388 million О $320 million $148 million
Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $7,800.0 $6,000.0 Operating costs excluding depreciation 5,850.0 5,100.0 Depreciation and amortization 216.0 180.0 Earnings before interest and taxes $1,734.0 $720.0 Less Interest 168.0 129.0 Pre-tax income $1,566.0 $591.0 Taxes (40%) 626.4 236.4 Net income available to common stockholders $939.6 $354.6 Common dividends $846.0 $284.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash $90.0 $72.0 Short-term investments 39.0 30.0 Accounts receivable 975.0 780.0 Inventories 1,512.0 1,260.0 Total current assets $2,616.0 $2,142.0 Net plant and equipment 2,160.0 1,800.0 Total assets $4,776.0 $3,942.0 Liabilities and Equity Accounts payable $468.0 $360.0 Accruals 345.0 300.0 Notes payable 156.0 120.0 Total current…
Omega Corp. has EBIT of $12 million, depreciation expense of $2 million and taxes of $4 million. Omega's operating cash flow (OCF) is: Group of answer choices $6 million $10 million $14 million $18 million
5 Rebecky's Flowers 4U, Inc., had free cash flows during 2021 of $41 million, NOPAT of $81 million, and depreciation of $19 million. Using this information, fill in the blanks on Rebecky's balance sheet below. (Enter your answers in millions of dollars.) Assets Current assets Cash and marketable securities Accounts receivable Inventory Total Fixed assets Gross plant and equipment Less: Depreciation Net plant and equipment Other long-term assets Total Total assets $ s 2021 $ s $ $ REBECKY'S FLOWERS 4U, INC. Balance Sheet as of December 31, 2021 and 2020 (in millions of dollars) 2020 32 $ 68 132 252 $ 510 S 89 421 S 60 481 733 $ $ 29 78 113 220 Liabilities and Equity Current liabilities. Accrued wages and taxes Accounts payable Notes payable Total Long-term debt 460 Stockholders' equity 70 390 60 Retained earnings 450 Total 670 Total liabilities and equity Preferred stock (5 million shares) Common stock and paid-in surplus (10 million shares) $ S 5 $ 2021 22 $ 95 5 $ 2020 20 232 257 S…
Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales $ 13,000 $ 11,000 Operating costs excluding depreciation 11,522 9,638 Depreciation and amortization 390 370 Earnings before interest and taxes $ 1,088 $ 992 Less interest 240 200 Pre-tax income $ 848 $ 792 Taxes (25%) 212 198 Net income available to common stockholders $ 636 $ 594 Common dividends $ 205 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 550 $ 500 Short-term investments 120 100 Accounts receivable 2,750 2,500 Inventories 1,750 1,700 Total current assets $ 5,170 $ 4,800 Net plant and equipment 3,650 3,500 Total assets $ 8,820 $ 8,300 Liabilities and Equity Accounts payable $ 1,100 $ 1,000 Accruals 550 500 Notes payable 182 100 Total current liabilities $ 1,832…
Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars) 2020 2019 Sales $ 13,000 $ 11,000 Operating costs excluding depreciation 11,604 9,684 Depreciation and amortization 340 320 Earnings before interest and taxes $ 1,056 $ 996 Less interest 180 100 Pre-tax income $ 876 $ 896 Taxes (25%) 219 224 Net income available to common stockholders $ 657 $ 672 Common dividends $ 201 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 550 $ 500 Short-term investments 110 100 Accounts receivable 2,750 2,500 Inventories 1,450 1,300 Total current assets $ 4,860 $ 4,400 Net plant and equipment 3,850 3,500 Total assets $ 8,710 $ 7,900 Liabilities and Equity Accounts payable $ 1,100 $ 1,000 Accruals 550…
How much is the cash flow from operating activities from the following data of Majan Corporation for the year 2020: RO 000 Proceeds from sale of long-term investment RO 100 Issuance of capital stock RO 65 Depreciation expense RO 15 Operating profit RO 405 Purchase of plant assets RO 65 Decrease in inventories RO 150 Increase in accounts payable RO 150 Increase in accounts receivable RO 225 Retirement of bonds payable RO 75 Payment of cash dividends RO 130 Taxes paid RO 25 Gain on sale of fixed asset RO 40 a. RO 430 b. RO 455 c. RO 325 d. RO 495
Kirkwood Corp has the following financial information: • EBITDA = $200 • Interest Expense = $20 • Tax Rate = 30% • Depreciation/ Amortization = $50 • Capital Expenditures = $30 • Change in NWC = = $15 Calculate operating free cash flow. (Note this cash flow is sometimes referred to as Enterprise FCF or Unlevered FCF) Round to nearest whole number
Free Cash FlowsUsing Rhodes Corporation’s financial statements (shown after part f), answerthe following questions.a. What is the net operating profit after taxes (NOPAT) for 2018?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2018? e. What is the ROIC for 2018?f. How much of the FCF did Rhodes use for each of the following purposes:after-tax interest, net debt repayments, dividends, net stock repurchases,and net purchases of short-term investments? (Hint: Remember that a netuse can be negative.)
Q1. Complete the statement provided, for a tax rate of 20% and calculate the Operating cash flow 2019 Income Statement 201,200 108,660 20,790 27,300 Sales Cost of goods sold Selling & Administrative Depreciation EBIT Interest 5,520 EBT Таxes NI Dividends 9,343 21,801 Addition to retained profits
Remaining Question Completion Status: Calculate operating cash flow for 2016 using the following information? Amount ($) Description Year 2016 500,000 Sales 300,000 Cost of goods sold 65,000 Depreciation Interest expense 15,000 Selling and administrative expenses 55,000 Equity (at the beginning of 2016) 197,250 Tax rate 30% Dividends payout 50% $65,000 $145,500 $125,500 $80,000 QUESTION 6 From the following table calculate net income after tax for 2016? Click Save.and Submit to SGVE and submit. Click Sove All Answers to scve all answers
Cash flow from assets for the year 2022: Cash flow from assets = Operating cash flow – Change in net working capital – Net capital spending = $34,630 - $7,280 - $11,090 = $16,260 Cash flow to creditors for the year 2022: Cash flow to creditors = Interest paid - Ending long term debt + Beginning long term debt= $2,890 - $30,000 + $28,000 = $890 Cash flow to stockholders for the year 2022:Cash flow to stockholders = Dividends paid - Net new equity = $10,800 - $11,780 = -$980 Briefly comment on the Life Positive Inc’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and equity.