Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Benson, Inc., has sales of $44830, costs of $14,370, depreciatior and interest expense of $2,390. The tax rate if 23 percent.
What is the operating cash flow, or OCF?
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- A firm has recorded EBIT at $1,800, depreciation at $400, EBT at $1,700 and a tax rate of 40%. Find the operating cash flows for this firm. Hin #1t: Operating CF = EBIT + depreciation - tax. Hint #2: Tax = EBT * tax rate.arrow_forwardWhat findings can you give about these FINANCIAL PROJECTIONS below. (Feasibilty Study)arrow_forwardOperating cash flow. Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $81,500,000, cost of goods sold of $34,500,000, sales and administrative costs of $6,200,000, depreciation expense of $7,100,000, and a tax rate of 30%. The operating cash flow is $ (Round to the nearest dollar.)arrow_forward
- Operating cash flow. Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $78,200,000, cost of goods sold of $34,400,000, sales and administrative costs of $6,100,000, depreciation expense of $7,900,000,and a tax rate of 30%. The operating cash flow is $ (Round to the nearest dollar.)arrow_forwardA company has EBIT of $30,000, depreciation expense of $3,000, interest expense of $4,000, and taxes of $11,000. What is the company's operating cash flow?arrow_forwardFind the operating cash flow for the year for Marathon and Sons if it had sales revenue o\f $80,200,000, cost of goods sold of $35,700,000, sales and administrative costs of $6,800,000, depreciation expense of $4,000,000, and a tax rate of 30%.arrow_forward
- Need answer pleasearrow_forwardAssume the company purchases land for $1,000,000, paying $ 400,000 cash and borrowing the remainder with long-term notes payable. How should this transaction be reported on a statement of cash flows?arrow_forwardYou have gathered this information on a firm: $500,000 sales, $10,000 cash dividends, $300,000 cost of goods sold, $20,000 administrative expense, $20,000 depreciation expense, $40,000 interest expense, $40,000 purchase of productive equipment, no changes in working capital, and a tax rate of 21%. What is the free cash flow?arrow_forward
- Create a statement of cash flow for the current year using Wright Co's income statement and balance sheet. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Income Statement: Current Year Revenue 4,500.00 Cost of Goods Sold 2,250.00 Gross Margin 2,250.00 SG&A 580.00 EBITDA 1,670.00 Depreciation Expense 540.00 EBIT 1,130.00 Interest Expense 170.00 EBT 960 Taxes 336.00 Net Income 624.00 Dividends 410 Addition to Retained Earnings 214.00 Balance Sheet: Assets Prior Year Current Year Cash 800 ???? Accounts Receivables 400 425.00 Inventory 300 350.00 Total Current Assets 1,500 ???? Net Fixed Assets 5,000 5,300.00 Total Asset 6,500 ???? Liabilities and Equity Prior Year Current Year Accounts Payable 300 350.00 Notes Payable 1,000 900.00 Total Current Liabilities 1,300 1,250.00 Long-Term Debt 2,000 2,500.00 Total Liabilities 3,300 ???? Common Stock and Paid-in Capital 2,200 2,200…arrow_forwardConsider the following information from the Income Statement of Production Ltd. on 31st December 2022 (accounting year-end): Operating profit equals £30,000 and depreciation expense equals £2,000. In addition, consider the following information from the Statement of Financial Position of Production Ltd.: Trade Receivables Trade Payables 31st December 2021 31st December 2022 £ £ 2,500 9,000 32,000 12,000 Additional information: • Tax paid on cash during the current accounting year amounts to £12,500 • Gain on asset disposal equals £1,000. Considering all the previous information from Production Ltd., which of the following statements is true on 31st December 2022? O a. Production Ltd. shows a negative net cash flow from operating activities which equals -£8,000. O b. Production Ltd. shows a positive net cash flow from operating activities which equals £3,000. O c. The net cash flow from operating activities equals £0 O d. None of the answers is true.arrow_forwardCapital O, X, Y, and Z are $10,000, $15,000, $16,000 and $18,000, respectively. O has a loan balance of $1,000. Profit is divided in a ratio of 5:2;1;2. Assets are sold, liabilities are paid, and cash remains of $6,000. How should this remaining cash be distributed?arrow_forward
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