FIN 300 Lecture : FinStatementsCF_practice.pdf
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Major Manuscripts, Inc. 2009 Income Statement
Net sales | 7,700 |
Cost of goods sold | 6,765 |
Depreciation | 210 |
Earnings before interest and taxes | 725 |
Interest paid | 20 |
Taxable Income | 705 |
Taxes | 246 |
Net income | 459 |
Dividends | 207 |
Major Manuscripts, Inc. 2009 Balance Sheet |
2009 | 2009 |
Cash | 2,250 | Accounts payable | 1,700 |
Accounts rec. | 870 | Long-term debt | 270 |
Inventory | 2,200 | Common stock (par & paid-in capital) | 2,400 |
Total | 5,320 | Retained earnings | 4,060 |
Net fixed assets | 3,110 |
Total assets | 8,430 | Total liabilities & equity | 8,430 |
If Major Manuscripts, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can it maintain assuming that no additional external equity financing is available.
3.86%
3.71%
4.07%
4.17%
4.01%
1.)Company ABC has sales of $1,650,000, cost of goods sold of$600,000, EBIT of $450,000, interest expense of $70,000, and a taxrate of 27%. If the company paid $57,000 in dividends what is theaddition to retained earnings.
2.)At the beginning of the year, a firm had current assets of$121,306 and current liabilities of $124,509. At the end of theyear, the current assets were $122,418 and the current liabilitieswere $103,718. What is the change in net working capital?
3.)
Use the Income Statement and Balance Sheet below to calculatethe companies free cash flow.
Income Statement | 2017 |
Net Sales | 675 |
Cost of goods sold | 210 |
Depreciation | 50 |
EBIT | 415 |
Interest Paid | 15 |
EBT | 400 |
Taxes (30%) | 120 |
Net Income | 280 |
Dividends | 105 |
Addition to Retained Earnings | 175 |
Assets | 2016 | 2017 | Liabilities and Shareholders equity | 2016 | 2017 |
Current Assets | Current Liabilities | ||||
Cash | 100 | 125 | Accounts Payable | 200 | 250 |
Accounts Receivable | 250 | 350 | Notes Payable | 150 | 225 |
Inventory | 400 | 375 | |||
Total Current Assets | 750 | 850 | Total Current Liabilities | 350 | 475 |
Long term debt | 300 | 250 | |||
Fixed Assets | Stockholders equity | ||||
PPE | 1500 | 1700 | Common stock | 300 | 300 |
Accumulated Depreciation | 400 | 450 | Retained earnings | 900 | 1075 |
Net PPE | 1100 | 1250 | Total ShareholderĆ¢ĀĀs Equity | 1200 | 1375 |
Total Assets | 1850 | 2100 | Total Liabilities & Equity | 1850 | 2100 |
4.)A firm has net working capital of $900. Long-term debt is$4,200, total assets are $8,000, and fixed assets are $4,300. Whatis the amount of the total liabilities?