Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 3, Problem 1CIC
To determine
State the reason for addition of stock-based compensation for computation of cash flow from operations.
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A
Comparison of Firm Performance
1
2 2013 Financials
3
Net operating revenues
4 Cost of goods sold
5 Gross profit
6 Selling, general, and administrative expense
7 Other costs
8 Operating income
9
Interest expense
10 Other income (loss) - net
11 Income before income taxes
12 Income taxes
13 Net income
14 Assets
15 Cash and cash equivalents
16 Net receivables
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18 Prepaid expenses and other
19 Total current assets
20 Property, plant and equipment
21 Goodwill
22 Other assets
23 Total assets
24 Liabilities and Stockholder Equity
25 Accounts payable
26 Short-term debt
27 Total current liability
28 Long-term debt
29 Other liabilities
30 Total liabilities
31 Stockholder equity
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B
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For this question, please refer to the Fact Pattern below (Same fact pattern as previous question). Given the set of transactions above, what was
Adjusted EBITDA in 2021?
O $1,107.2
O $1,082.2.
O $1,068.2
$1,092.2
Activities during the year:
Capital expenditures
Cost of Goods Sold (excluding D&A)
Dividend Payout Ratio (dividends/ net income to common shareholders)
Income Tax
Net Interest Expense
Net Revenues
Non-controlling Interest Expense (After-Tax)
Litigation Expense
Other Operating Expenses (excluding D&A)
Purchases of intangible assets
Preferred dividends
Research And Development (excluding D&A)
Proceeds from sale of land with book value of $15
Selling, General, & Administrative (excluding D&A)
Write-down of PP&E
2021
580.0
3,256.0
40%
35%
45.6
5,800.0
25.0
97.0
16.5
45.0
5.0
56.3
20.0
1,488.0
7.0
Required:
1. Calculate the total current assets at December 31, 2021.
2. Calculate the total liabilities and stockholders' equity at December 31, 2021.
3. Calculate the earnings from operations (operating income) for the year ended December 31,
2021.
4. Calculate the net income (or loss) for the year ended December 31, 2021.
5.
What was the average income tax rate for the company for 2021?
6. If 48,000 of dividends had been declared and paid during the year, what was the January 1,
2021, balance of retained earnings?
Assume that all balance sheet items reflect account balances at December 31, 2021 of ABC Ind, and that
all income statement items reflect activities that occurred during the year then ended.
Accounts receivable
Depreciation expense
Land
Cost of goods sold
Retained earnings
Cash
Equipment
Supplies
Accounts payable
Service revenue
Interest expense
Common stock
Income tax expense
Accumulated depreciation
Long-term debt
Supplies expense
Merchandise inventory
Net sales
99,000…
Chapter 3 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
Ch. 3 - Need for a Statement of Cash Flows. The accrual...Ch. 3 - Articulation of the Statement of Cash Flows with...Ch. 3 - Classification of Interest Expense. Under U.S....Ch. 3 - Prob. 4QECh. 3 - Classification of Changes in Short-Term Financing....Ch. 3 - Classification of Cash Flows Related to...Ch. 3 - Treatment of Non-Cash Exchanges. The acquisition...Ch. 3 - Computing Cash Collections from Customers....Ch. 3 - Computing Cash Payments to Suppliers. Lowes...Ch. 3 - Computing Cash Payments for Income Taxes. Visa...
Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting the Relation between Net Income and...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting Relations among Cash Flows from...Ch. 3 - Interpreting the Statement of Cash Flows. The...Ch. 3 - Interpreting the Statement of Cash Flows. Texas...Ch. 3 - Interpreting the Statement of Cash Flows. Tesla...Ch. 3 - Interpreting the Statement of Cash Flows. Gap Inc....Ch. 3 - Prob. 19PCCh. 3 - Prob. 20PCCh. 3 - Interpreting the Statement of Cash Flows....Ch. 3 - Extracting Performance Trends from the Statement...Ch. 3 - Interpreting a Direct Method Statement of Cash...Ch. 3 - Prob. 24PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 26PCCh. 3 - Preparing a Statement of Cash Flows from Balance...Ch. 3 - Prob. 1AICCh. 3 - Prob. 1BICCh. 3 - Prob. 1CICCh. 3 - Prob. 1DICCh. 3 - Prob. 1EICCh. 3 - Prob. 1FICCh. 3 - Prob. 1GICCh. 3 - Prob. 1HICCh. 3 - Prob. 2AICCh. 3 - Prob. 2BICCh. 3 - Prob. 2CICCh. 3 - Prob. 2DICCh. 3 - Prob. 2EICCh. 3 - Prob. 2FICCh. 3 - Prob. 3IC
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