Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9780077861759
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 5QP
Calculating OCF Barrell, Inc., has sales of $19,800, costs of $10,900,
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Sheaves, Inc., has sales of $54,000, costs of $24,600, depreciation expense of $2,650, and interest expense of $2,400.
If the tax rate is 21 percent, what is the operating cash flow, or OCF?
Bronze, Inc has sales of $58,200, costs of $25,300, depreciation expense of $3,100, and interest expense of $4,400. If the tax rate is 21 percent, what is the operating cash flow?
Benson, Inc., has sales of $44830, costs of $14,370, depreciatior and interest expense of $2,390. The tax rate if 23 percent.
What is the operating cash flow, or OCF?
Chapter 2 Solutions
Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 2 - Prob. 1CQCh. 2 - Prob. 2CQCh. 2 - Prob. 3CQCh. 2 - Prob. 4CQCh. 2 - Prob. 5CQCh. 2 - Cash Flow from Assets Why is it not necessarily...Ch. 2 - Operating Cash flow Why is it not necessarily bad...Ch. 2 - Net Working Capital and Capital Spending Could a...Ch. 2 - Cash Flow to Stockholders and Creditors Could a...Ch. 2 - Prob. 10CQ
Ch. 2 - Building a Balance Sheet Sankey, Inc., has current...Ch. 2 - Building an Income Statement Shellon, Inc., has...Ch. 2 - Market Values and Book Values Klingon Cruisers,...Ch. 2 - Prob. 4QPCh. 2 - Calculating OCF Barrell, Inc., has sales of...Ch. 2 - Calculating Net Capital Spending Gordon Driving...Ch. 2 - Building a Balance Sheet The following table...Ch. 2 - Cash Flow to Creditors The 2014 balance sheet of...Ch. 2 - Cash. Flow to Stockholders The 2014 balance sheet...Ch. 2 - Prob. 10QPCh. 2 - Cash Flows Ritter Corporations accountants...Ch. 2 - Financial Cash flows The Stancil Corporation...Ch. 2 - Building an Income Statement During the year, the...Ch. 2 - Calculating total Cash Flows Schwert Corp. shows...Ch. 2 - Using Income Statements Given the .following...Ch. 2 - Prob. 16QPCh. 2 - Marginal versus Average Tax Rates (Refer to Table...Ch. 2 - Prob. 18QPCh. 2 - Accounting Values versus Cash Flows In Problem 18,...Ch. 2 - Calculating Cash Flows Cusic Industries had the...Ch. 2 - Prob. 21QPCh. 2 - Use the following information for Ingersoll, Inc.,...Ch. 2 - Prob. 23QPCh. 2 - Prob. 24QPCh. 2 - Net Fixed Assets and Depreciation On the balance...Ch. 2 - Prob. 26QPCh. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MC
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- Sheaves, Inc.., has sales of $55,500, costs of $25.200, depreciation expense of $2,800, and interest expense of $2,550. If the tax rate is 24 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculetions.) Operating cash fowarrow_forwardForaker Inc. has sales of $46,200, costs of $23,100, depreciation expense of $2200, and interest expense of $1700. If tax rate is 22%, the operating cash flow (OCF) is:arrow_forwardUse the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax rate of 25%: Revenue COGS (Cost of Goods Sold) Gross Profit Wages Expense Rent and Other Occupancy Expense Depreciation Expense Operating Income Current Assets Accounts Receivable Inventory Total Current Assets Gross Fixed Assets (at historical cost) less: Accumulated Depreciation Net Fixed Assets Total Assets Current Year 100,000 67,000 11,500 15,000 1,000 8,500 5,500 50,000 30,000 20,000 Prior Year 4,200 950 8,200 6,000 46,000 29,000 17,000 Current Liabilities Accounts Payable Wages Payable Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. Show a decrease as a negative figure. Type your answer... 4,500 900arrow_forward
- Using the following information, and a tax rate of 35%, calculate the yearly cash flow: Sales $2,100 Variable costs $1,200 Fixed costs $200 Depreciation $100arrow_forwardHailey, Inc., has sales of $24200, costs of $8800, depreciation expense of $2600, and interest expense of $1800. Assume the tax rate is 36 percent. What is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)arrow_forwardHailey, Inc., has sales of $19,580, costs of $9,450, depreciation expense of $2,120, and interest expense of $1,610. Assume the tax rate is 40 percent. What is the operating cash flowarrow_forward
- Groff Incorporated, has sales of $51,500, costs of $23,600, depreciation expense of $2,400, and interest expense of $2,150. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)arrow_forwardHammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520 and interest expense of $1,750. If the tax rate is 35 percent. (Enter your answer as directed, but do not round intermediate calculations.) Required: What is the operating cash flow? (Round your answer to the nearest whole number, e.g. 32.) Operating cash flowarrow_forwardCalculating 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?arrow_forward
- Sheaves, Inc., has sales of $54,000, costs of $24,600, depreciation expense of $2,650, and interest expense of $2,400. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)arrow_forwardBenson, Inc., has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of $1,850. The tax rate is 21 percent. What is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)arrow_forwardGraff, Incorporated, has sales of $55,000, costs of $25,000, depreciation expense of $2,750, and interest expense of $2,500. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Operating cash flowarrow_forward
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