Answered: A debt-free firm has profit for the…

A debt-free firm has profit for the year of $210 000, taxes of $55 822.78 and depreciation of $42 000. What is the operating cash flow?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Suppose a firm has the following information: Cash = $500,000; shortterm investments = $2.5 million;…

A: Cash = $500,000 short term investment= $2.5 million accounts receivable = $1.2 million inventories =…

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: Given the following data for Year-1: (EBIT-taxes)=$5 million; Depreciation=$2 million; Capital…

A: (EBIT - Taxes) = $5 million Depreciation = $2 million Capital expenditure = $4 million Working…

Q: Compute its cash flow using the following format. (In

A: The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…

Q: The following information has been taken from the income statement and statement of financial…

A: solution is given in step 2 and 3

Q: Calculate a firm's free cash flow (“FCF") from the Statement of Cash Flows if Net income is $60,000,…

A: Formula used:

Q: The Clifford Corporation’s 2023 income statement shows the following:a. Calculate the operating cash…

A: Step 1: Given Value for Calculation Sales = s = $300,000Costs = c = $173,000Other expenses = oe =…

Q: Sales are 2,000,000. COGS are 1,000,000. Depreciation is 300,000. Taxes are 150,000. SG&A is…

A: Formula used: Operating cash flow = Net income + Depreciation. Sum of both net income and…

Q: Sales are 2,000,000. COGS are 1,000,000. Depreciation is 300,000. Taxes are 150,000. SG&A is…

A: Operating cash flow of the business means income generated from the operations of the business but…

Q: Investing activities Acquisition of fixed assets Sale of fixed assets Total cash flow from investing…

A: ($ in millions)The EBIT is The operating cash flow is

Q: Operating cash flow. Find the operating cash flow for the year for Harper Brothers, Inc. if it had…

A: Operating cash flow (OCF) refers to the amount of cash generated by a company's main operations,…

Q: Question / If we have capital 10,000,000, retained earnings 5,000,000, reserves 3,000,000, personal…

A: Equity means all amount pertaining to the shareholders or owners of the business.

Q: A firm has EBIT OF $500,000 and depreciation expense of $24,000. Fixed charges total $44,000.…

A: The cash coverage ratio is the ratio that tells about the availability of cash with the firm to bear…

Q: Need help with the questions

A: Step 1: Introduction to the Cash Flow StatementIn the domain of accounting, the cash flow statement…

Q: Given the cash flow from assets reported in the table provided, what is the value of the asset at…

A: Cash Flow Value refers to the present value of expected future cash flows generated by an…

Q: should the terminal cashflow be used to calculate the net present value of a company? Give reasons…

A: In order to calculate net present value we should consider the effect of total cash inflow and cash…

Q: A firm has recorded EBIT at $1,800, depreciation at $500, EBT at $1,700 and a tax rate of 40%. Find…

A: EBIT = $1800Depreciation = $500EBT = $1700Tax rate = 40%

Q: Your firm has the following income statement items: sales of $52,000,00%3; income tax of $1,880,000;…

A: Cash flows from operations means all cash inflows and outflows generated from the operations of the…

Q: Question: Given that a company has an income statement as follows: Sales Costs 145,000 86,000 Other…

Q: Category Prior Year Current Yea Accounts payable 3,197.00 5,955.00 Accounts receivable 6,865.00…

A: Cash flow Statement: This statement showing the inflows and outflows of cash and cash equivalents…

Q: What does a capital expenditure (in the investing activity cashflow sheet) of $53,900,000 tell us…

A: It tells us the company has invested $53,900,000 in the investment which may be in land , building…

Q: Last year, Industrial Industries had Operating Cash Flow of 625,000. It had Net Capital Spending of…

A: Operating Cash Flow = $625,000 Net Capital Spending = -$875,000 Net Working Capital = $25,000

Q: You have gathered this information on a firm: $512,000 sales, $11,200 cash dividends, $306,000 cost…

A: Calculation of net income:Formula used:The operating cash flow is

Q: In 2021, Johnson Controls reported the following accounting items (in millions of dollars): Sales =…

A: Free cash flow the cash available for it's investors before paying any debts, dividend. It is…

Q: Need answer of this question

A: Step 1:Sales is $4973170Income tax is $460265Selling, general and administrative expenses is…

Q: Last year, Industrial Industries had Operating Cash Flow of -55,000. It had Net Capital Spending of…

A: Free cash flow is the cash available to the company after paying all the operating and capital…

Q: What is the free cash flow for this company: Net Income = $500mm Equity comp = $500mm Depreciation =…

A: In order to calculate the free cash flow for the company, we need to take into account the net…

Q: irm's operating cash flow (OCF) is defined as

A: Cash generated by the operating activities of an organization is called Operating Cash Flow. An…

Q: A firm has recorded EBIT at $1,800, depreciation at $400, EBT at $1,700 and a tax rate of 40%. Find…

A: Variables in the question:EBIT = $1,800Depreciation = $400EBT = $1,700 Tax rate = 40%

Q: Operating cash flow. Find the operating cash flow for the year for Robinson and Sons if it had sales…

A: Operating Cash Flow: It represents the cash produced by the firm from its normal operations of the…

Q: Operating cash flow. Find the operating cash flow for the year for Robinson and Sons if it had sales…

A: Given information: Sales amounted to $78,200,000 Cost of goods sold is $34,400,000 Administrative…

Q: A company has EBIT of $30,000, depreciation expense of $3,000, interest expense of $4,000, and taxes…

A: EBIT = $30,000Depreciation expense = $3,000Interest expense = $4,000Taxes = $11,000 EBIT (Earnings…

Q: Find the operating cash flow for the year for Marathon and Sons if it had sales revenue o\f…

A: Gross Profit :— It is the difference between sales revenue and cost of goods sold. Operating…

Q: Need answer please

A: 1. Calculate Earnings Before Interest and Taxes…

Q: (a) Assume JPM has a Liquidity Coverage Ratio of 112%. Assume JPM's High Quality Liquid Assets total…

A: The liquidity coverage ratio is a term that refers to the proportion of highly liquid assets held by…

Q: You have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost…

A: Free cash flow is an important measure or metric of a company’s financial performance. It represents…

Q: If a company has $181,000 in total liabilities and $225,000 in total assets,what percentage of total…

A: There are two types of money used by an organization to finance assets : owner's money called…

Q: Xanu Company's current value of operations is $4,079 million, with $679 million due to free cash…

A: given, current value of operations = $4,079 million free cash flows occurring in Years 1 to 5=$679…

Q: Suppose a firm has the following information: Cash = $500,000; short-term investments = $2.5…

A: Operating current assets are the assets such as, cash, inventory and accounts receivables that are…

Q: A firm has recorded EBIT at $1,800, depreciation at $600, EBT at $1,700 and a tax rate of 40%. Find…

A: Earning Before Interest and Taxes = EBIT = $1800Depreciation = d = $600Earning Before Tax = EBT =…

Q: Prior Year Current Year 3,122.00 5,911.00 6,972.00 9,087.00 5,731.00 6,190.00 19,765.00 13,919.00…

A: Financing Activities Borrowing long term liabilities ------- Increase in Cash flow…

Question

A debt-free firm has profit for the year of $210 000, taxes of $55 822.78 and depreciation of $42 000. What is the operating cash flow?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Conceptual Introduction:

VIEW

Calculations are as follow:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

24. Following are a company's income statement at the end of the last year (year 0) and coming year (year 1). Each year, the company's accounts receivable need to be main- tained at 5% of sales. The company's inventory and accounts payable do not change. Capital expenditure in year 1 is $10,000. Year Sales Depreciation EBIT Taxes (a) What is the free cash flow in year 17 1 85,000 92,000 20,000 22,000 17,000 19,500 3,500 3,700 0 (b) The company's business is mature, so it is expected to generate the same amount of free cash flow every year forever. The firm-specific discount rate is 7%, and the risk-free rate is 2%. What is the enterprise value of the company? (c) The company has $150,000 in cash and $50,000 in debt. In addition, it has 7000 shares outstanding. What is the company's stock price per share?
Find the operating cash flow for the year for Monisan and Sons if it had sales revenue of $81,200,000, cost of goods sold of $35,700,000, sales and administrative costs of $6,800,000, depreciation expense of $8,000,000, and a tax rate of 30%.
Finance is Fun, Inc recently reported net income of $4.2 million, depreciation of $750,000, and amortization of $100,000. What was its net cash flow?
Provide Such Answer
As a financial analyst, you have been tasked with evaluating Randy Watson Music's free cash flow. Based on the 2022 income statement, EBIT was $41 million, the tax rate was 21 percent, and its depreciation expense was $6 million. NOPAT gross fixed assets increased by $28 million from 2021 and 2022. The company's current assets increased by $18 million and current liabilities increased by $14 million. Calculate the operating cash flow (OCF) for 2022. (Enter your answer in millions of dollars.)
30.For 2020, the FNL Corporation reported $ 21,500 of Income on an Equity Method Investment. During the same year, FNL received $ 1,500 of dividends from this investment. Assuming that the company uses the indirect method to prepare the Statement of Cash Flows, what is the net effect of this investment when adjusting the Net Income to compute the Cash Provided by the Operating Activities? Select one: a It will increase by $ 1,500. b. It will decrease by $ 20,000. c. It will increase by $ 20,000. d. $ 0. It has no effect.
7. New World has total assets of $31,300, long-term debt of $8,600, net fixed assets of $20,300, and owners' equity of $21,100. What is the value of the net working capital?
Given the following data for Year 1: Earnings before Interest and Tax = $11 million; Interests = $3 million, Taxes = $2 million; Depreciation = $4 million; Investment in fixed assets = 5 million; Investment net working capital = $1 million. Calculate the free cash flow (FCF) for Year 1: Group of answer choices $8 million $9 million $6 million $7 million
MANUAL SOLUTION AND CASH FLOW DIAGRAM !!
Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $318,600,000, cost of goods sold of $134,300,000, sales and administrative costs of $39,600,000, depreciation expense of $64,800,000, and a tax rate of 40%. The operating cash flow is $ (Round to the nearest dollar.)
Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow. a. Calculate the firm's net operating profit after taxes (NOPAT) for this year. b. Calculate the firm's operating cash flow (OCF) for the year. c. Calculate the firm's free cash flow (FCF) for the year. d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Keith Corporation Balance Sheets Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 Income…

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS