This year, The Boring Company, has an EBIT of $100m, interest expenses of $40m, depreciation expenses of $15m and capital expenditures of $30 million, and has increased its net working capital by $5m. Its tax rate is 35%. Compute earnings and free cash flow.
Q: Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of…
A: The cash flow that is generated by a company from its primary business operation is term as the…
Q: The MacCauley Company has sales of $150 million and total expenses (excluding depreciation) of $90…
A: Data given: Sales = $150 million Total expenses (excluding depreciation) = $90 million.…
Q: For the fiscal year just ended, Yoran Electronics had the following results: Net income 920,000;…
A: Operating cash flow means the cash generated from regular business operations. It relates to the…
Q: how much money had accumulated at the end of the 5th year?
A: Internal rate of return method: Internal rate of return method is one of the capital investment…
Q: A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to…
A: After tax cash flow = P 2,000,000 WACC = 8%
Q: EVA
A: Formula for calculating Economic value added (EVA) is: Operating income after tax less annual cost…
Q: Last year, Sharpe Radios had net operating profit after-taxes (NOPAT) of $7.8 million. Its EBITDA…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Crazytown Motors is expected to have an EBIT of $680,000 next year. Depreciation, the increase in…
A: EBIT Year 1 = $680,000 Depreciation = $45,000 Increase in Net working capital = $9,000 Capital…
Q: Last year, Jackson Tires reported net sales of $40,000,000 and total operating costs (including…
A: Net sales = $40,000,000 Total operating costs = $26,000,000 Net profit before tax = Net sales-Total…
Q: Jannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of…
A: Operating cashflows = net income + depreciation +/- change in assets and liabilities income before…
Q: A firm’s total net operating capital for the previous year was$9.3 million. For the current year,…
A: Free cash flows refers to the amount which is left after paying operating expenses and capital…
Q: Jannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of…
A: Operating cash flow means net income of the business after excluding the effect of non cash expenses…
Q: Crarytown Motors is expected to have an EBIT of $680,000 next year. Depreciation, the increase in…
A: Cashflow during year 1: = EBIT * (1-tax rate) + depreciation - capital expenditure - working…
Q: You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of…
A: Here, EBIT of this year is $2,850,000 depreciation is $225,000 Increase in Net Working Capital is…
Q: The Retail Company currently has assets of P3,000,000 and accounts payable of P200,000. The firm's…
A: External Funds Needed is calculated with the help of following formula External Funds Needed =…
Q: A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to…
A: Annual after-tax operating cash flows (CF) = P 2,000,000 WACC = 8%
Q: This year, FCF Inc. has earnings before interest and taxes of $10,420,000 depreciation expenses of…
A: Solution: Free cash flow means the amount of cash available with a firm after meeting its operating…
Q: Benson, Inc., has sales of $39,930, costs of $13,110, depreciation expense of $2,710 and interest…
A: Operating cash flows refers to the cash flows that are arises or incurred due to core business…
Q: DDFX Inc. recently reported operating income of RM2.75 million, depreciation of RM1.20 million, and…
A: Operating income (EBIT) = RM2.75 million Depreciation = RM1.20 million Tax rate = 40% Sum of capital…
Q: For 2018, Gourmet Kitchen Products reported $22.5 million of sales and $18 million of operating…
A: Economic value added (EVA) is a measure of a company's economic profit. It is the value created…
Q: JohnBoy Industries has a cash balance of $45,000, accounts payable of $125,000, inventory of…
A: Working capital is the amount of funds required for the managing daily operating activities of the…
Q: The company earned a revenue of Php 70,500 at the end of the third year but then decreases…
A: Here, Revenue Earned at the end of 3rd year is Php 70,500 % of the decrease in revenue per year is…
Q: The Emerald Corporation had $55,000 in cash at year-end 2010 and $25,000 in cash at year end 2011.…
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: what is Lauryn’s FCF for the year?
A: Future cash flow is also called free cash flow. Future cash flow means the amount of money expected…
Q: a During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest…
A: Payback period is the period within which the sum invested by the company in a project will be…
Q: Last year, Blue Lake Mines, Inc., had earnings after tax of $550,000. Included in its expenses were…
A: The question is based on the concept of business finance
Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…
A: Calculation of Free Cash Flow using excel:
Q: For 2018, Gourmet Kitchen Products reported $23 million of sales and $18 million of operating costs…
A: EVA: It is the excess profit that a company generates over & above the expected returns of the…
Q: The School of Mensis recently reported an Earnings Before Interest and Taxes (EBIT) of $37,500, and…
A: Free Cash Flow = EBIT *(1-tax rate) + depreciation and amortization - change in net working capital…
Q: Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of…
A: The formula to compute operating cash flow as follows:
Q: Foraker Inc. has sales of $46,200, costs of $23,100, depreciation expense of $2200, and interest…
A: Sales = $46,200 Costs = $23,100 Depreciation = $2,200 Interest expense = $1700 Tax rate = 22%
Q: A company has annual after-tax operating cash flows of P2,000,000 per year which are expected to…
A: Annual after tax cash inflow = P 2,000,000 Weighted average cost of capital = 8%
Q: TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes…
A: Free cash flow shows the cash flow through its operations deducting the cost of expenditures on…
Q: TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes…
A: The formula used is shown:
Q: This year a firm had revenues of $10,000 and total expenses of $8,000. The firm also increased their…
A: Free Cash Flow: Generally speaking, free cash flow (FCF) is the cash that a firm earns after…
Q: Pearl Corp. is expected to have an EBIT of $2,900,000 next year. Depreciation, the increase in net…
A: EBIT Year 1 = $2,900,000 Depreciation = $160,000 Increase in Net working capital = $130,000 Capital…
Q: Calculate a firm's free cash flow if it has net operating profit after taxes of $60,000,…
A: The total cash that a company has to pay off to its liabilities and dividend to its shareholders is…
Q: Graff, Incorporated, has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and…
A: Operating cash flows is the amount of cash flows the company is able to generate from operations.…
Q: Company DotThrive reported the following financial results. Operating income is $94.98 million and…
A: Free cash flows refer to the cash generated by a company after taking into consideration the cash…
Q: Renew Life Industries has an EBIT of $28 million, depreciation of $3 million and a tax rate of 38%.…
A: Cash flow: It implies to the net flow of cash after deducting all the outflows of cash from the…
Q: Last year, Sharpe Radios had net operating profit after-taxes (NOPAT) of $7.8 million. Its EBITDA…
A: Particulars Amount (in $ million) EBITDA 15.5 Less: Depreciation & Amortization 2.5 EBIT…
Q: The Netflix Corporation's cash flow from operations before interest and taxes was $5.25 milion in…
A: Calculation of Price per share:The price per share is $9.39.Excel Spreadsheet:
Q: RJS generated $78,000 net income this year. The firm's financial statements also show that its…
A: Net income = $ 78,000 Interest expenses = $ 40,000 Tax rate = 35% NOPAT = Net income+[Interest…
Q: The Hasting Sugar Corporation has the following pattern of net income each year, and associated…
A: Dividend is portion of net profit of entity that is shared with common stockholders of entity. It…
Q: Derry Corporation is expected to have an EBIT of $3,400,000 next year. Increases in depreciation,…
A: Time value of money: The time value of money is the idea that the value of money received today will…
This year, The Boring Company, has an EBIT of $100m, interest expenses of $40m,
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?This year, FCF, Inc., has earnings before interest and taxes of $10 million, depreciation expenses of $1 million, capital expenditures of $1.5 million, and has increased its net working capital by $500,000. If its tax rate is 35%, what is its free cash flow?This year, FCF Inc. has earnings before interest and taxes of $9,630,000, depreciation expenses of $1,200,000, capital expenditures of $1,700,000, and has increased its net working capital by $600,000. If its tax rate is 35%, what is its free cash flow?
- A project generates revenues of $10,000, has cash expenses of $800, and depreciation charges of $500 in a particular year. The firm's tax rate is 25%. What is the firm's net income or cash flow from operations?This year, FCF Inc. has earnings before interest and taxes of $10,180,000, depreciation expenses of $1,200,000, capital expenditures of $1,100,000, and has increased its net working capital by $500,000. If its tax rate is 35%, what is its free cash flow? The company's free cash flow is $ (Round to two decimal places.)This year, FCF Inc. has earnings before interest and taxes of $9010 000, depreciation expenses of $700000, capital expenditures of $1 200000, and has increased its net working capital by $ 525 000. If its tax rate is 38 %, what is its free cash flow?
- This year, Stang Fabrications Inc. has EBIT of $9,080,000, depreciation expenses of $800,000, capital expenditures of $1,000,000, and has increased its net working capital by $450,000. If its tax rate is 25%, what is its free cash flow? The company's free cash flow is $ (Round to two decimal places.)The Fleming Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 25 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year 3 Year 4 Investment $ 34,000 Sales revenue $ 17,500 $ 18,000 $ 18,500 $ 15,500 Operating costs 3,700 3,800 3,900 3,100 Depreciation 8,500 8,500 8,500 8,500 Net working capital spending 400 450 500 400 ? a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A…The Fleming Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 23 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year 3 Year 4 Investment $ 27,000 Sales revenue $ 14,000 $ 14,500 $ 15,000 $ 12,000 Operating costs 3,000 3,100 3,200 2,400 Depreciation 6,750 6,750 6,750 6,750 Net working capital spending 330 380 430 330 ? a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)
- Gabbert’s Corporation expects to have sales of $15 million. Costs other than depreciations are expected to be 77% of sales, and depreciation is expected to be $1.8 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. The federal tax rate is 25%. Interest expense is $210,000. 1. Set up an income statement. What is Gabbert’s expcted net income? Its expected net cash flow? 2. Suppose Congress changed the tax laws so that Gabbert’s depreciation expenses went up by 60%. No changes in operations occurred. What would happen to the reported profit and to net cash flow? 3. Now suppose that Congress changed the tax laws such that, instead of increasing Gabbert’s depreciation, it was reduced by 60%. How would the profit and the net cash flow be affected? 4. If this were your company, would you prefer Congress to cause your depreciation expense to be increased or reduced? Why?The Fleming Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 22 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year 3 Year 4 Investment $ 41,000 Sales revenue $ 21,000 $ 21,500 $ 22,000 $ 19,000 Operating costs 4,400 4,500 4,600 3,800 Depreciation 10,250 10,250 10,250 10,250 Net working capital spending 470 520 570 470 ? a. Compute the incremental net income of the investment for each year. Year 1, Year 2, Year 3, Year 4 b. Compute the incremental cash flows of the investments for each year. Year 1, Year 2, Year 3, Year 4 c. Suppose the appropriate discount rate…Company DotThrive reported the following financial results. Operating income is $94.98 million and depreciation and amortization is $6.12 million. The company spent $13.99 million buying new equipment and sold $3.58 million old equipment (this is the after-tax salvage). Net working capital increased by $1.31 million from previous year. The company's tax bracket is 21%. What's the company's Free Cash Flow (FCF) for the year?
