Please help with question D
Last year Rattner Robotics had $5 million of operating income. Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 40%. At year-end, it had $14 million in current asset, $3 million in accounts payable, $1 million in (expense) accrualâs, $2 million in notes payable, and $15 million in net plant and equipment. Rattner had no other current liabilities. Assume that Rattner's only noncash item was depreciation.
a. What was the company's net income?
b. What was its net operating working capitals (NOWC)?
c. What was its net working capital (NWC)?
d. Rattner had $12 million in net plant and equipment the prior year. Its net operating working capital has remained constant over time. What is the company's free cash flow (FCF) for the year that just ended?
e. Rattner had 500,000 common shares outstanding and the common stock amount on the balance sheet is $5 million. The company has not issued or repurchased common stock during last years. Last year's balance in retained earnings was $12 million and the firm paid out dividends of $1.2 million during the year. Develop Rattner's end-of-year Statement of StockHolders Equity.
What was the company's net income?
Company's net income = (operating income - interest expense)*(1-tax rate)
(5 -1)*(1-40%)
Company's net income = $ 2.40 Milliion
What was its net operating working capitals (NOWC)?
Net operating working capitals = current asset - accounts payable - accruals
14 - 3 - 1
Net operating working capitals = $ 10 Million
What was its net working capital (NWC)?
Net working capital = current asset - Current liabilty
14 - (3 + 1 + 2)
Net working capital = $ 8 Million
Rattner had $12 million in net plant and equipment the prior year. Its net operating working capital has remained constant over time. What is the company's free cash flow (FCF) for the year that just ended?
e. Rattner had 500,000 common shares outstanding and the common stock amount on the balance sheet is $5 million. The company has not issued or repurchased common stock during last years. Last year's balance in retained earnings was $12 million and the firm paid out dividends of $1.2 million during the year. Develop Rattner's end-of-year Statement of StockHolders Equity.
End of Year Statement of Stockholders Equity
Particulars
Common Stock
5,000,000.00
Retained earnings
10,800,000.00
Total Stockholders Equity
15,800,000.00
Retained earnings =last years earnings-dividend paid
12,000,000.00-1,200,000.00=10,800,000.00
Please help with question D
Last year Rattner Robotics had $5 million of operating income. Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 40%. At year-end, it had $14 million in current asset, $3 million in accounts payable, $1 million in (expense) accrualâs, $2 million in notes payable, and $15 million in net plant and equipment. Rattner had no other current liabilities. Assume that Rattner's only noncash item was depreciation.
a. What was the company's net income?
b. What was its net operating working capitals (NOWC)?
c. What was its net working capital (NWC)?
d. Rattner had $12 million in net plant and equipment the prior year. Its net operating working capital has remained constant over time. What is the company's free cash flow (FCF) for the year that just ended?
e. Rattner had 500,000 common shares outstanding and the common stock amount on the balance sheet is $5 million. The company has not issued or repurchased common stock during last years. Last year's balance in retained earnings was $12 million and the firm paid out dividends of $1.2 million during the year. Develop Rattner's end-of-year Statement of StockHolders Equity.
What was the company's net income?
Company's net income = (operating income - interest expense)*(1-tax rate)
(5 -1)*(1-40%)
Company's net income = $ 2.40 Milliion
What was its net operating working capitals (NOWC)?
Net operating working capitals = current asset - accounts payable - accruals
14 - 3 - 1
Net operating working capitals = $ 10 Million
What was its net working capital (NWC)?
Net working capital = current asset - Current liabilty
14 - (3 + 1 + 2)
Net working capital = $ 8 Million
Rattner had $12 million in net plant and equipment the prior year. Its net operating working capital has remained constant over time. What is the company's free cash flow (FCF) for the year that just ended?
e. Rattner had 500,000 common shares outstanding and the common stock amount on the balance sheet is $5 million. The company has not issued or repurchased common stock during last years. Last year's balance in retained earnings was $12 million and the firm paid out dividends of $1.2 million during the year. Develop Rattner's end-of-year Statement of StockHolders Equity.
| End of Year Statement of Stockholders Equity | |||||
| Particulars | |||||
| Common Stock | 5,000,000.00 | ||||
| Retained earnings | 10,800,000.00 | ||||
| Total Stockholders Equity | 15,800,000.00 | ||||
| Retained earnings =last years earnings-dividend paid | |||||
| 12,000,000.00-1,200,000.00=10,800,000.00 | |||||
