Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $710,000 in capital expenditures and $510,000 in working capital investments during 202 Rainier Printing Income Statement January 1 to December 31, 2021 (s thousands) $ 11,200 7,100 4,100 1,210 Net sales Cost of sales Gross profit Operating expense Depreciation expense Operating income Interest expense Income before tax Tax 660 Income after tax Note: Enter your answer in thousands. Free cash flow 2,230 360 1,870 748 $1,122

Use the income statement shown next to calculate free cash flow for Rainier Printing for 2021. In addition to the information in the income statement, assume that Rainier had $710,000 in capital expenditures and $510,000 in working capital investments during 202 Rainier Printing Income Statement January 1 to December 31, 2021 (s thousands) $ 11,200 7,100 4,100 1,210 Net sales Cost of sales Gross profit Operating expense Depreciation expense Operating income Interest expense Income before tax Tax 660 Income after tax Note: Enter your answer in thousands. Free cash flow 2,230 360 1,870 748 $1,122

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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1. Net Operating Capital for 2022 2. Amount of Total Investor-Supplied (Net Current Investment and Net Fixed Asset Investment) operating capital for 2022 3. Free Cash Flow for 2022 Net Operating Working Capital for 2022 4. Net Operating Profit After Taxes for 2022
Free Cash Flow The following information is from the financial statements of Evans & Sons. Cash flow from operating activities $1,600,000 Capital expenditures 850,000 Current liabilities, beginning of year 300,000 Current liabilities, end of year 380,000 Calculate the free cash flow for Evans & Sons. $ 0
↓ The following table shows the projected free cash flows of an acquisition target. The potential acquirer wants to estimate its maximum acquisition price at an 8 percent discount rate and a terminal value in year 5 based on the perpetual growth equation with a 4 percent perpetual growth rate. Year Free cash flow 1 -950 2 3 -475 0 4 290 a. Estimate the target's maximum acquisition price. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. > Answer is complete but not entirely correct. Maximum acquisition price $ 8,640 x 5 880 b. Estimate the target's maximum acquisition price when the discount rate is 7 percent and the perpetual growth rate is 5 percent. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. Maximum acquisition price $ 46,921 X
Free Cash Flows Rhodes Corporation’s financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars) 2020 2019 Sales $ 13,000 $ 11,000 Operating costs excluding depreciation 11,604 9,684 Depreciation and amortization 340 320 Earnings before interest and taxes $ 1,056 $ 996 Less interest 180 100 Pre-tax income $ 876 $ 896 Taxes (25%) 219 224 Net income available to common stockholders $ 657 $ 672 Common dividends $ 201 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 550 $ 500 Short-term investments 110 100 Accounts receivable 2,750 2,500 Inventories 1,450 1,300 Total current assets $ 4,860 $ 4,400 Net plant and equipment 3,850 3,500 Total assets $ 8,710 $ 7,900 Liabilities and Equity Accounts payable $ 1,100 $ 1,000 Accruals 550…
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 !!
From the following information on the income statement and the balance sheet, what is free cash flow to the firm (FCFF) in 2019? Assume that the tax rate is 0.3. Income Statement  Items 2018 2019 Revenue 2,542 3,004 Cost of goods sold 1,017 1,235 SG&A expense 308 353 Depreciation 409 505 Interest expense 108 155 Balance Sheet  Items 2018 2019 Cash 151 308 Accounts receivable 456 903 Inventory 905 1,207 PP&E 9,087 12,843 Accumulated Dep 4,241 5,739 Accounts payable 605 656 Short-term debt 304 505 Long-term debt 3,044 3,448 Common stock 1,800 1,800 Retained earnings x x
Fordson has the following financial information for FY 2023 (in thousands): Operating revenue Salary expense Depreciation expense All other operating expenses Tax expense (20% tax rate) Net Income Expected working capital increase of Capital expenditure What is free cash flow? O 420 720 820 O 1120 O Cannot be calculated 4000 1000 400 1200 280 1120 300 400
Calculate the Cash Flows in the Statement of Cash Flows below from the provided Balance sheet and Income Statement BALANCE SHEET (in millions of dollars) INCOME STATEMENT (in millions of dollars) 2015 2014 2015 2014 Assets Net sales $3,000.0 $2,850.0 Cash and equivalents 10 $ 80 Operating costs except depreciation and amortizatio 2,616.2 2,497.0 90.0 100.0 Accounts receiva ble 375 315 Depreciation and amortization $ 283.8 $ 263.0 Inventories 615 415 Earnings before interest and taxes (EBIT) Total current asse ts $ 1,000 $ 810 Less interest 88.0 60.0 $ 195.8 $ 203.0 Net plant and equipment 1,000 870 Earnings before taxes (EBT) $ 2,000 1,680 Total assets Taxes 78.3 81.2 117.5 $ 121.8 Net income Liabilities and Equity Common dividends 57.5 53.0 Addition to re tained earnings Accounts payable $ $ 60 $ 30 60.0 $ 68.8 Accruals 140 130 Notes payable 110 60 Tax rate 40% 40% 310 $ Total current liabilities 220 Long-term bonds 750 580 $ 1,060 $ Total liabilities 800 Common stock (50,000,000…
A summary of cash flows for Conching Printing for the year ended May 31, 2020, is shown below. Cash receipts: Cash received from fees earned P 1,500,000.00 Additional investment of owner 75,000.00 Cash payments: Cash paid for expenses 1,215,000.00 Cash paid for equipment 240,000.00 Cash paid to owner for personal use 66,000.00 Determine the net cash flows from operating activities.
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
What is National Co.’s free cash flow for 2022?

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