Hartzell Inc. had the following data for 2020, in millions: Net income = $600; after-tax operating income [EBIT(1-T)] = $700; and Total assets = $1,700. Information for 2021 is as follows: Net income $825; after-tax operating income [EBIT(1-T)] = $1,700; and Total assets = $2,250. Assume the firm had no excess cash. How much free cash flow did the firm generate during 2021?

Hartzell Inc. had the following data for 2020, in millions: Net income = $600; after-tax operating income [EBIT(1-T)] = $700; and Total assets = $1,700. Information for 2021 is as follows: Net income $825; after-tax operating income [EBIT(1-T)] = $1,700; and Total assets = $2,250. Assume the firm had no excess cash. How much free cash flow did the firm generate during 2021?

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

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Hartzell Inc. had the following data for 2020, in millions: Net income = $600; after-tax operating income [EBIT(1 - T)] = $700; and Total assets = $2,000. Information for 2021 is as follows: Net income = $825; after-tax operating income [EBIT(1 - T)] = $850; and Total assets = $2,500. Assume the firm had no excess cash. How much free cash flow did the firm generate during 2021?
XYZ Corporation has the following financial data for 2021: Interest Expense $20,000; Net New Borrowing $2,000; Dividends Paid $5,000; Net New Stock - $3,000. What is the firm's Cash Flow From Assets for 2021?
In 2021, Johnson Controls reported the following accounting items (in millions of dollars): Sales = $50 Cash Expenses = $30 Depreciation = $51 Interest Paid = $3T axes = $1 Dividends Paid = $3 Capital Expenditures = $8 What were the firm's Free Cash Flows in 2021? (Note: Enter your answer without the millions or the dollar sign, so if you think the answer is $5 million, just enter 5)
C Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,184; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,193; and tax rate = 30%. The company’s WACC is 11.07%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar. Group of answer choices: $583 $586 $577 $572 $580
An analyst has collected the following information regarding YYYYY: Earnings before interest and taxes (EBIT) = P700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow?
Ramsay & Bell, Inc. had sales for 2019 of $180,000, and EBITDA was 36% of sales. Furthermore, depreciation was $8,400, interest was $5,760, the corporate tax rate was 21%, and the company pays 10% of its net income as dividends. Given this information and the balance sheets below, calculate the free cash flow for 2019. $24,556 $27,056 $28,556 $30,056 None of the above is within $100 of the correct answer.
The Malia Corporation had sales in 2019 of $65 million, total asswets of $42 million, and total liabilities of $20 million. The interest rate on th company's debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company's operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
Schwert Corp. shows the following information on its 2020 income statement: sales = $227,000; costs = $129,000; other expenses = $7,900; depreciation expense = $14,200; interest expense = $13,700; taxes = $21,770; dividends = $10,500. In addition, you’re told that the firm issued $5,200 in new equity during 2020 and redeemed $3,700 in outstanding long-term debt. a. What was the 2020 operating cash flow? (Do not round intermediate calculations.) b. What was the 2020 cash flow to creditors? (Do not round intermediate calculations.) c. What was the 2020 cash flow to stockholders? (Do not round intermediate calculations.) d. If net fixed assets increased by $30,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.)
during the 2019, rainbow umbrella corp. had sales of $920,000. cost of goods sold, administrative and selling expenses, and depreciation expense were $610, 000, $125, 000, and $155,000, respectively. in addition, the company had an interest expense of $57,000 and a tax rate of 21% . what is the company's net income for 2019? what is its operating cash flow? suppose the company paid out $53,000 in cash dividends. if spending on net fixed assets and net working capital was zero and if no new stock was issued during the year, what was the net new long-term debt?
QueensLand Ltd. had the following operating results for 2021: sales = $20,200; cost of goods sold = $8,200; depreciation expense = $1,200; interest expense = $1,400; dividends paid = $600. At the beginning of the year, net fixed assets were $9,100, current assets were $3,200, and current liabilities were $1,800. At the end of the year, net fixed assets were $9,700, current assets were $3,850, and current liabilities were $2,100. The tax rate for 2021 was 34%. What was the OCF for the year 2021? a. $9,600 b. $7,604 c. $6,204 d. $8,804
The Malia Corporation had sales in 2019 of $65 million, total assets of $42 million, and total liabilities of $20 million. The interest rate on the company’s debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company’s operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
On BeDeM Inc.'s 2023 income statement, you observe that: Sales $212,000 Cost of Sales = $50,000 Depreciation and Amortization . Other Income $0 = $42,000 From BeDeM Inc.'s 2023 statement of cash flows, you observe that the firm distributed $39,000 as dividends to its stockholders, which was 75% of its net income in 2023. Given that the firm's operating expenses were $51,000 in 2023, and earnings are taxed at 21%. (a) Calculate the firm's EBITDA in 2023. (b) Find the firm's EBITDA/Interest Coverage ratio in 2023.

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