While calc
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While calculating
a Subtracted from from EBIT(1-t) +(
b Subtracted from EBT.
c Subtracted from EBIT(1-t)
d Subtracted from EBIT.
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- The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capitalb. Disregard the assumptions in Part a. What is the depreciable basis? What are the annual depreciation expenses? c. Calculate the annual sales revenues and costs (other than depreciation). Why is it important to include inflation when estimating cash flows? d. Calculate annual net operating profit after sales (NOPAT). Then calculate the operating cash flows.The amounts needed to compute a company's working capital come from which of the following financial statements? Select one:a More than one will be needed b. Balance Sheet c Income Statement d None of the optionse Cashflow statement
- Please answer Part B and C. The following are answers from previous questions in case you need the below information. Operating Cash Flow: Operating Cash Flow (OCF)= Net Income + Depreciation – Increase in Working Capital. OCF=419,573+11,751-110,249= 321,075 Net Capital Spending: Net capital expenditures (NCE) = Fixed asset (current period) - Fixed asset (prior period) + depreciation (current period) NCE=258,251-261,779+11,751 =8,223 iii. Change in Net Working Capital Net Working Capital (NWC)= Current assets- current Liabilities Year 2019 : NWC =421,609-148,087 =273,522 Year 2020 : NMW= 550,572-166,801 =383,771 Change in Net Working Capital = 383,771-273,522=110,249 Sl.NO PARTICULARS AMOUNT EBIT + DEPRECIATION - TAXES = 597976+11751-178055= $ 431,672 ii] NET CAPITAL SPENDING: ENDING NET FIXED ASSETS - BEGINNING NET FIXED ASSETS + DEPRECIATION = 258251-261779+11751= $ 8223 iii] CHANGE IN NET WORKING…Under the indirect method, depreciation expense is addedto net income to report cash flows from operating activities. Does depreciation cause an inflow of cash?If all values carry a + sign, cash flow before taxes is represented by the following equation:a. gross income - expenses - depreciation - initial investment + salvage valueb. gross income - expenses - depreciation + salvage valuec. gross income - expenses - initial investment + salvage valued. gross income - expenses + initial investment + salvage value
- d. Compute its (1) operating cash flow to current liabilities ratio, (2) operating cash flow to capital expenditures ratio, and (3) free cash flow.Round your answers to (1) and (2) to two decimal places. (1) Operating cash flow to current liabilities ratio (2) Operating cash flow to capital expenditures ratio (3) Free cash flowDepreciation expenses are subtracted from net income using the indirect method to arrive at the cash flow supplied by operations.To account for cash flows from operational operations, the indirect method adds depreciation expenditure to net income. Is there an increase in cash due to depreciation?
