1
answer
0
watching
1,143
views
7 Jan 2018
Balance Sheets: 2013 2012 Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,300 1,490 Total assets $3,050 $2,125 Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 1,000 400 Total liabilities and equity $3,050 $2,125
Income Statements: 2013 2012 Sales $2,500 $1,200 Operating costs excluding depreciation 1,250 1,000 EBITDA $1,250 $200 Depreciation and amortization 100 75 EBIT $1,150 $125 Interest 62 45 EBT $1,088 $80 Taxes (40%) 435 32 Net income $653 $48 Dividends paid $53 $48 Addition to retained earnings $600 $0 Shares outstanding 100 100 Price $25.00 $22.50 WACC 10.00%
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
Using the financial statements given above, what is Rosnan's 2013 free cash flow (FCF)? Use a minus sign to indicate a negative FCF.
Please show all calculations, I cannot see how to calculate the capital expenditures
Balance Sheets: | |||
2013 | 2012 | ||
Cash and equivalents | $100 | $85 | |
Accounts receivable | 275 | 300 | |
Inventories | 375 | 250 | |
Total current assets | $750 | $635 | |
Net plant and equipment | 2,300 | 1,490 | |
Total assets | $3,050 | $2,125 | |
Accounts payable | $150 | $85 | |
Accruals | 75 | 50 | |
Notes payable | 150 | 75 | |
Total current liabilities | $375 | $210 | |
Long-term debt | 450 | 290 | |
Common stock | 1,225 | 1,225 | |
Retained earnings | 1,000 | 400 | |
Total liabilities and equity | $3,050 | $2,125 |
Income Statements: | |||
2013 | 2012 | ||
Sales | $2,500 | $1,200 | |
Operating costs excluding depreciation | 1,250 | 1,000 | |
EBITDA | $1,250 | $200 | |
Depreciation and amortization | 100 | 75 | |
EBIT | $1,150 | $125 | |
Interest | 62 | 45 | |
EBT | $1,088 | $80 | |
Taxes (40%) | 435 | 32 | |
Net income | $653 | $48 | |
Dividends paid | $53 | $48 | |
Addition to retained earnings | $600 | $0 | |
Shares outstanding | 100 | 100 | |
Price | $25.00 | $22.50 | |
WACC | 10.00% |
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
Using the financial statements given above, what is Rosnan's 2013 free cash flow (FCF)? Use a minus sign to indicate a negative FCF.
Please show all calculations, I cannot see how to calculate the capital expenditures
Beverley SmithLv2
8 Jan 2018