Paladin Furnishings generated $4 million in sales during 2018, andits year-end total assets were $3.2 million. Also, at year-end 2018, current liabilities were$500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and$100,000 of accrued liabilities. Looking ahead to 2019, the company estimates that its assetsmust increase by $0.80 for every $1.00 increase in sales. Paladin’s profit margin is 3%, andits retention ratio is 50%. How large of a sales increase can the company achieve withouthaving to raise funds externally?

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? O a. $275 million O b. $2,250 million O c. $1,375 million O d. $1,150 million O e. $1,475 million

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?

Square Hammer Corporation shows the following information on its 2018 income statement: Sales = $196,000; Costs = $84,000; Other expenses = $5,100; Depreciation expense = $9,000; Interest expense = $13,300; Taxes = $29,610; Dividends = $10,300. In addition, you're told that the firm issued $7,100 in new equity during 2018 and redeemed $8,700 in outstanding long-term debt. a. What is the 2018 operating cash flow? Operating cash flow b. What is the 2018 cash flow to creditors? Cash flow to creditors

Carston Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $4 million at the end of 2019. Carston is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 5%, and the forecasted retention ratio is 40%. Use the AFN equation to forecast the additional funds Carston will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar.

The 2Ball's Co's sales are forecasted to double from P1,000,000 in 2020 to P2,000,000 in 2021. The figures in the Dec. 31,2020, balance sheet (in thousands) follows: Current Assets, P500; Net Fixed Assets, P500; Accounts Payable and Accruals, P100; Notes Payable, P150; Long-term debt, P400; Common Stock, P100; Retained Earnings, P250. The 2Balls fixed assets were used to only 50% of capacity in 2020, but its current assets were at their proper level in relation to sales. All assets except fixed assets must increase in the same rate as sales and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. 2Balls' after tax profit margin is forecasted to be 5% and its payout ratio to be 60%. What is 2Balls Co.'s additional fund needed (AFN) for the coming year?

Kestus Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $5 million at the end of 2019. Kestus is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 25%. Use the AFN equation to forecast Kestus additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar.   Now assume the company's assets totaled $3 million at the end of 2019. Is the company's "capital intensity" the same or different comparing to initial situation?

Assume that today is December 31, 2018, and that the following information applies to Abner Airlines:  After-tax operating income [EBIT(1 - T)] for 2019 is expected to be $500 million. The depreciation expense for 2019 is expected to be $180 million. The capital expenditures for 2019 are expected to be $400 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 6% per year. The required return on equity is 15%. The WACC is 10%. The firm has $200 million of non-operating assets. The market value of the company's debt is $3.096 billion. 340 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent. $

As a financial analyst, you have been tasked with evaluating Randy Watson Music's free cash flow. Based on the 2022 income statement, EBIT was $41 million, the tax rate was 21 percent, and its depreciation expense was $6 million. NOPAT gross fixed assets increased by $28 million from 2021 and 2022. The company's current assets increased by $18 million and current liabilities increased by $14 million. Calculate the operating cash flow (OCF) for 2022. (Enter your answer in millions of dollars.)