FINS1613 Study Guide - Quiz Guide: Free Cash Flow, Gross Profit, Cash Flow
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Use the below information to answer the following question. |
Income Statement | |
For the Year | |
Sales | $42,700 |
Cost of goods sold | 29,250 |
Depreciation | 3,750 |
Earnings before interest and taxes | $ 9,700 |
Interest paid | 1,360 |
Taxable income | $ 8,340 |
Taxes | 2,840 |
Net income | $ 5,500 |
Dividends $1,925 |
Balance Sheet | |
End-of-Year | |
Cash | $1,320 |
Accounts receivable | 3,780 |
Inventory | 10,200 |
Total current assets | $15,300 |
Net fixed assets | 33,600 |
Total assets | $48,900 |
Accounts payable | $ 3,650 |
Long-term debt | 18,100 |
Common stock ($1 par value) | 15,000 |
Retained earnings | 12,150 |
Total Liab. & Equity | $48,900 |
The profit margin, the debt-equity ratio, and the dividend payout ratio for this firm are constant. Sales are expected to increase by $5,000 next year. What is the projected addition to retained earnings for next year? |
Assets | 2012 | 2013 |
---|---|---|
Cash | 45 | 50 |
A/R | 362 | 301 |
Inventory | 386 | 237 |
Total | 793 | 588 |
Net Fixed Assets | 1000 | 1200 |
Total Assets | 1793 | 1788 |
Liabilities | 2012 | 2013 |
---|---|---|
Accounts Payable | 341 | 327 |
Notes Payable | 150 | 125 |
Total | 491 | 452 |
Long-Term Debt | 500 | 750 |
Common Stock | 400 | 400 |
Retained Earnings | 95 | 125 |
1486 | 1727 |
2013 | |
---|---|
Sales | 1553 |
Cost of Goods Sold | 1242 |
Depreciation | 200 |
EBIT | 111 |
Interest | 80 |
Taxes | 60 |
Net Income | -29 |
A. What is the Cash Cycle (to 1 decimal)?
B. What is the Net Working Capital (to nearest dollar with nodecimals)?