Calculating Total Cash Flows [LO4] Jetson Spacecraft Corp. shows the following information on its 2009 income statement: sales $196,000; costs $104,000; other expenses $6,800; depreciation expense $9,100; interest expense $14,800; taxes $21,455; dividends $10,400. In addition, you’re told that the fi rm issued $5,700 in new equity during 2009 and redeemed $7,300 in outstanding long-term debt. a. What is the 2009 operating cash fl ow? b. What is the 2009 cash fl ow to creditors? c. What is the 2009 cash fl ow to stockholders?

Calculating Total Cash Flows [LO4] Jetson Spacecraft Corp. shows the following information on its 2009 income statement: sales $196,000; costs $104,000; other expenses $6,800; depreciation expense $9,100; interest expense $14,800; taxes $21,455; dividends $10,400. In addition, you’re told that the fi rm issued $5,700 in new equity during 2009 and redeemed $7,300 in outstanding long-term debt. a. What is the 2009 operating cash fl ow? b. What is the 2009 cash fl ow to creditors? c. What is the 2009 cash fl ow to stockholders?

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...

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Calculating Cash Flows [LO2] Dahlia Industries had the following operatingresults for 2009: sales $22,800; cost of goods sold $16,050; depreciationexpense $4,050; interest expense $1,830; dividends paid $1,300. At thebeginning of the year, net fi xed assets were $13,650, current assets were $4,800,and current liabilities were $2,700. At the end of the year, net fi xed assets were$16,800, current assets were $5,930, and current liabilities were $3,150. The taxrate for 2009 was 34 percent.a. What is net income for 2009?b. What is the operating cash fl ow for 2009?c. What is the cash fl ow from assets for 2009? Is this possible? Explain.d. If no new debt was issued during the year, what is the cash fl ow to creditors?What is the cash fl ow to stockholders? Explain and interpret the positive andnegative signs of your answers in ( a ) through ( d ).
Calculating Total Cash Flows [ LO4] Nightwish Corp. shows the following information on its 2021 income statement: Sales = $336,000; Costs = $194,700; Other expenses = $9,800; Depreciation expense = $20,600; Interest expense = $14,200; Taxes = $21,275; Dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2021 and redeemed $5,40o in outstanding long-term debt. a. What is the 2021 operating cash flow? b. What is the 2021 cash flow to creditors? c. What is the 2021 cash flow to stockholders? d. If net fixed assets increased by $53,200 during the year, what was the addition to NWC?
Calculating OCF (LO3) Fergus Inc. has sales of $39,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax rate is 35%, what is the operating cash flow, or OCF?
LO4 13. Calculating Cash Flows Weiland Co. shows the following information on its 2022 income statement: sales = $336,000; costs = $194,700; other expenses = $9,800; depreciation expense = $20,600; interest expense = $14,200; taxes = $21,275; dividends = $21,450. In addition, you're told that the firm issued $7,100 in new equity during 2022 and redeemed $5,400 in outstanding long-term debt. Page 47 a. What is the 2022 operating cash flow? b. What is the 2022 cash flow to creditors? c. What is the 2022 cash flow to stockholders? d. If net fixed assets increased by $53,200 during the year, what was the addition to NWC?
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?
H6. Java Company is planning its operations for next year, and as its CFO, you will need to forecast the company’s additional funds needed (AFN) based on the following data. Dollars are in millions. Last year’s sales = $415 Last year’s accounts payable = $50 Sales growth rate = 30% Last year’s notes payable = $50 Last year’s total assets = $595 Last year’s accruals = $30 Last year’s profit margin = 5.31% Target payout ratio = 60% Your company is operating at full capacity. Based on the AFN formula and the Percentage of Sales method, what is the AFN for the coming year? Group of answer choices $142.20 $141.36 $143.04 $144.53 $145.38
20 capital investment by $55,000. What was e III 3 14. Calculating Total Cash Flows (LO3) Teeswater Corp. shows the following information on its 2020 statement of comprehensive income: sales = $235,000; costs = $141,000; other expenses = $7,900; depreciation expense = $17,300; interest expense = $12,900; taxes = $19,565; dividends = $12,300. In addition, you're told that the firm issued $6,100 in new equity during 2020 and redeemed $4,500 in outstanding long-term debt. a. What is the 2020 operating cash flow? b. What is the 2020 cash flow to creditors? c. What is the 2020 cash flow to shareholders? d. If net fixed assets increased by $25,000 during the year, what was the addition to NWC? Page 64
Consider the following data (be careful there might be some "unnecessary" information). EBIT = 176 Interest expense = 10 Tax rate = 30% Depreciation = 38 Net working capital = 30 Increase in net working capital = 10 Beginning of period Net PP&E = 50 Capex = 16 What is the free cash flow of the firm that year?
22. Calculating Cash Flows [LO4] Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD ENTERPRISES 2008 and 2009 Partial Balance Sheets PARROTHEAD ENTERPRISES 2009 Income Statement Assets Liabilities and Owners' Equity Sales $8,280 2008 2009 2008 2009 Costs 3,861 Current assets $ 653 $ 707 Current liabilities $ 261 $ 293 Depreciation 738 Net fixed assets 2,691 3,240 Long-term debt 1,422 1,512 Interest paid 211 a. What is owners' equity for 2008 and 2009? b. What is the change in net working capital for 2009? c. In 2009, Parrothead Enterprises purchased $1,350 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)
Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars): (Click on the following icon in order to copy its contents into a spreadsheet.) Revenues COGS and Operating expenses other than depreciation Depreciation Increase in net working capital Capital expenditures Marginal corporate tax rate Year 1 103.7 43.3 a. What are the incremental earnings for this project for years 1 and 2? b. What are the free cash flows for this project for the first two years? a. What are the incremental earnings for this project for years 1 and 2? The incremental earnings for year 1 is $ 26.1 3.9 30.4 25% million. (Round to one decimal place.) The incremental earnings for year 2 is $ b. What are the free cash flows for this project for the first two years? The free cash flow for year 1 is $ The free cash flow for year 2 is $ million.…
a) Compute Magna Corp's Free Cash Flow assuming the following: $400 million Operating income: Depreciation & amortization: Interest expense: Capital expenditures: $30 million $40 million 120% of depreciation & amortization Income tax rate: 35% Dividends: Increase in accounts receivable: Decrease in inventory: Decrease in accounts payable: $20 million $10 million $5 million $15 million b) Using a 2% perpetuity growth model and a WACC of 10%, what is the expected value of Magna Corp? Using the Dividend Discount Model and the same assumptions as in (b), c) propose a value for Magna Corp.
(a) Assume JPM has a Liquidity Coverage Ratio of 112%. Assume JPM's High Quality Liquid Assets total $750 billion, what is JPM's 30-day net cash outflow? What is JPM's 30-day net cash outflow? (b) At year - end, 2022, JPM total assets $3, 665,743, 000, 000 ($3.665 trillion). What fraction of total assets are risk - weighted?