Answered: Calculate: Profits before and after…

Calculate: Profits before and after taxes Change in cash EBITD Coverage ratio REVENUE 400,000 OPERATING COSTS 250,000 DEPRECIATION 25,000 INTEREST 20,000 PROFITS TAX 20%

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 9P: Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current...

See similar textbooks

Related questions

Q: So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of S63,200 and interest…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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: Benson inc has sales of 39530, costs of 12750 depreciation expense of 2550 and interest expense of…

A: Operating cash flow refers to the cash flow generated from the core operations of the business. It…

Q: A company has $600,000 in Sales, $400,000 in Costs, and $100,000 in Depreciation expenses. If the…

A: Operating cash flow can be calculated as revenues less costs after taking effect of taxes.

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: SSSSS’ operating income (EBIT) is P500,000. The company’s tax rate is 40 percent, and its operating…

A: Hi, Thanks for the Question Since you asked multiple questions, we will answer the first question…

Q: Sheaves, Inc, has sales of $55,500, costs of $25,200, depreciation expense of $2,800, and interest…

A: The operating cash flow is calculated by adding depreciation and interest expense in the net income…

Q: Assume a corportation has earnings before depreciation and taxes of $100,000, depreciation of…

A: Information Provided: EBIT = $100,000 Depreciation = $50,000 Tax = 30%

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: 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: Using the following information, and a tax rate of 35%, calculate the yearly cash flow: Sales…

A: Income before tax = Sales - Variable costs - Fixed costs - Depreciation Income before tax = $2,100 -…

Q: If cash flow from operating activities is 700,000, tax rate is 30%, and capital expenditure is…

A: Free cash flow is $410,000. Computation of free cash flow: Excel spread sheet:

Q: ASSETS EQUITIES P 500,000 1,500,000 Current assets Current liabilities P 200,000 Long-term…

A: Return on Current Assets = 7% Return on Fixed Assets = 16% Cost of Current liabilities = 2% Cost of…

Q: Use the information below for clarkson corporation to calculate operating cash flow. sales.…

A: Given: Net income = $935,123 Depreciation =$1,020,100

Q: particulars Amount Net cash provided $700,000 Average current liabilities $200,000 verage long term…

A: The cash available for the firm to repay creditors and pay dividends and interest to investors is…

Q: Giglio Inc. has the following information for the previous year: Net income = $400; Net operating…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Calculate a firm's free cash flow if it has net operating profit after taxes of P60,00 depreciation…

A: The cash generated by a company after accounting for financial outflows to continue operations and…

Q: Benson, Inc., has sales of $42,030, costs of $13,650, depreciation expense of $2,950, and interest…

A: Calculation of operating cash flow are as follows:

Q: Kirkwood Corp has the following financial information: • EBITDA = $200 • Interest Expense = $20 %3D…

A: The question is based on the concept of Free cashflows

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: Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520 and interest…

A: Operating cash flows = NOPAT + Depreciation = EBIT x (1 - Tax rate) + Depreciation = (Sales - Costs…

Q: Lala Electronics Sdn. Bhd. Statement of Comprehensive Income for the year ended 31/12/2020 RM…

A: Cash conversion cycle represent the number of days taken by the company to convert its goods into…

Q: if you have the following information Sales 250,000 Cost of goods sold 260,000 Gross loss (10000)…

A: Financing activities refer to the transactions involved in raising and retiring funds. In order to…

Q: Assume a corporation has earnings before depreciation and taxes of $107,000, depreciation of…

A: Depreciation is an expense that is deducted from income statement but does not involve actual outlay…

Q: Jannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of…

A: Cash flow statement: This is the statement that shows the cash inflow and outflow. This statement is…

Q: flow

A: Introduction: Operating cash flow refers to the cash flow that is being generated by the business on…

Q: Prepare Cash flows from Operating Activities > Increase in accounts receivable P 300,000 > Decrease…

A: Introduction: Statement of cash flows: All cash in and outflows are shown in Statement of cash…

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: The earnings before interest and tax is $794 million, The depreciation is $75 million, and taxes are…

A: The term depreciation refers to the process of systematically allocating the cost of an asset over…

Q: bon. The company S20 million at a rate of 6% compounded yearly. Determine the before tax cost of…

A: WACC refers to the joint cost of company's capital from all the sources of the company. It includes…

Q: Rhia Company has sales of P1,250,000, cost of goods sold of P750,000, depreciation expenses of…

A: Sales 1250000 Less COGS 750000 Gross Profit 500000 Less Depreciation expense…

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

A: Given:

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

A: For the purpose of computing the cash flow from operations: 1. Any non-cash income or expense needs…

Q: o

A: Earnings before interest and taxes = $100,000 Depreciation = $50,000 Tax bracket = 30%

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: What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For…

A: NOPAT: Net operating profit after tax is a measure indicating the performance of a company through…

Q: ating cash flows from Sales: $2,190,000 Cost: $815,000 Depreciation: $290,000 Tax rate: 21% Life: 3…

A: Given information : Sales 2190000 Cost 815000 Depreciation 290000 Tax rate 21% Life 3…

Q: Hailey, Inc., has sales of $19,580, costs of $9,450, depreciation expense of $2,120, and interest…

A: Operating cash flow is nothing but the cash generated from day-to-day business operations. It is…

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

A: Operating cash flow = profit after tax /net income + depreciation - taxes

Q: Hailey, Inc., has sales of $24200, costs of $8800, depreciation expense of $2600, and interest…

A: Operating cash flow refers to the cash generated by the regular operating activities of a business…

Q: A company has the following data for a year: Revenue 250 MM…

A: Revenue: It is the Income generated by any organization from the regular course of business…

Question

Calculate:

Profits before and after taxes
Change in cash
EBITD
Coverage ratio

REVENUE 400,000

OPERATING COSTS 250,000

DEPRECIATION 25,000

INTEREST 20,000

PROFITS TAX 20%

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

Use the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax rate of 25%: Revenue COGS (Cost of Goods Sold) Gross Profit Wages Expense Rent and Other Occupancy Expense Depreciation Expense Operating Income Current Assets Accounts Receivable Inventory Total Current Assets Gross Fixed Assets (at historical cost) less: Accumulated Depreciation Net Fixed Assets Total Assets Current Year 100,000 67,000 11,500 15,000 1,000 8,500 5,500 50,000 30,000 20,000 Prior Year 4,200 950 8,200 6,000 46,000 29,000 17,000 Current Liabilities Accounts Payable Wages Payable Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. Show a decrease as a negative figure. Type your answer... 4,500 900
Cost of goods sold = 100,000 Merch at Beginning = 50,000Merch at End = 45,000 Acct Payable Beginning = 30,000Acct Payable End = 40,000 What is Cash paid for merch this year?
Given the following information calculate the relevant annual Net Cash Flow After Tax [NCFAT], needed to calculate NPV. Forecast Annual Income $ Cash Revenue 360,000 Less Cash Operating Expenses 160,000 Admin Cash Flow Expenditure 60,000 Depreciation 36,000 Interest 24,000 Net Profit Before Tax Tax @30% 24,000 Net Profit After Tax 56,000
Using the following information, and a tax rate of 35%, calculate the yearly cash flow: Sales $2,100 Variable costs $1,200 Fixed costs $200 Depreciation $100
Calculate the equivalent AW at i= 10% per year for the following net cash flow: Year Cash flow, $ -2,000 2. -2,000 3 -2,000 4 5,000 5,000 5,000 Select one: O a. 573.9 O b. 1,431.9 O c. 1,860.9 O d. 1,002.9 O e. 2.289.9
3. Compute for the following: Required: Payback period, payback reciprocal, accounting rate of return, Net present value and profitability index Total investment. P 200,000 Cost of capital 10% Net income P 15,000 for 8 years P 80,000 Cash inflow
4. Find the real After-Tax ROR for the following cash flow. Given 28% tax & i, =8.5% 100K 11K 11K 11K 11K of 1 20 M .. 100K
Given are the following data for year 1:Revenue = $45 million; Variable cost = $10 million; Fixed cost = $5 million; Depreciation = $1 million; Interest expense = $3 million; Capital expenditure = $12 million; Change in working capital = $2 million. Corporate tax rate is 30%. Calculate the free cash flow to firm (FCFF) for year 1: a. $4.2 million b. $6.3 million c. $7.3 million d. $5.2 million
) Assuming a 9% cost of capital, find the modified internal rate of return for the following cash flows: a. 19.78% b. 6.95% c. 13.64% d. 7.86% Year Cash Flow 0 1 2 3 -$175 $167 $240 -$120
Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current year. Carter has $12 million in total net operating assets in the current year and had $10 million in the previous year. What is its free cash flow?
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?
Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in year two, $2,000 in year three. $2,500 in year four, and $2,000 in year five. What is the NPV using 8% as the discount rate? For further instructions on net present value in Excel, see Appendix C.