FINE 2000 Study Guide - Final Guide: Earnings Before Interest, Taxes, Depreciation, And Amortization, Inventory Turnover, Standard Deviation

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2 May 2017

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Total assets = total liabilities + total equity. Net income = addition to retained earnings + dividends. Cffa = ocf nwc net capital spending. Cffa = cf to creditors + cf to shareholders. Ocf = (sales costs)(1 t) + depreciation*t. Net capital spending = ending net fixed assets beginning net fixed assets + depreciation. Cf to creditors = interest paid net new borrowing. Cf to shareholders = dividends paid net new equity. Pv of an annuity due = (1+r) (pv of an annuity) Fv of an annuity due = (1+r) (fv of an annuity) Price of a bond = pv (coupons) + pv (face value) = Return on assets (roa) = net income / total assets. Return on equity (roe) = net income / total equity. Total asset turnover = sales / total assets. Inventory turnover = cost of goods sold / inventory. Equity multiplier = total assets / total equity.

Related Questions

Widgets, Inc. Use the following information to answer the next ten questions

Net Sales: 1000

Cost of Goods Sold: 600

Depreciation: 100

Interest Paid: 30

Dividends Paid: 30

Tax Rate: 35%

Solve for: 1.) EBIT, 2.) Net Income, 3.) Addition to Retained Earnings, 4.) Operating Cash Flow.

Use this additional information about Widgets, Inc. to fill in the blanks:

2010 Net Capital Spending

Ending Net Fixed assets........$500

- Beginning Net Fixed Assets.......$300

+ Depreciation......5.)

Net Captial spending.......6.)

2010 Change in Net Working Capital

2010 Current Assets.......$1600

2010 Current Liabilities.....$1200

2010 Net Working Capital.......7.)

2009 Current Assets.....$1800

2009 Current Liabilities.....$1200

2009 Net Working Capitial......8.)

Change in Net Working Capital......9.)

10.) What is the 2010 Cash Flow from Assets?

aquamarinepug18

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 Shareholderâs 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?

beigedeer979

2016 2017 2016 2017 Current assets $ 934 $ 984 Currentliabilities $ 375 $ 398 Net fixed assets 3,897 4,576 Long-term debt2,021 2,167 WESTON ENTERPRISES 2017 Income Statement Sales $ 11,770Costs 5,710 Depreciation 1,060 Interest paid 180 a. What wasowners' equity for 2016 and 2017? (Do not round intermediatecalculations.) Owners' equity 2016 $ Owners' equity 2017 $ b. Whatwas the change in net working capital for 2017? (Do not roundintermediate calculations.) Change in NWC $ c-1 In 2017, thecompany purchased $1,845 in new fixed assets. How much in fixedassets did the company sell? (Do not round intermediatecalculations.) Fixed assets sold $ c-2 In 2017, the companypurchased $1,845 in new fixed assets. What was the cash flow fromassets for the year? The tax rate is 35 percent. (Do not roundintermediate calculations.) Cash flow from assets $ d-1 During2017, the company raised $400 in new long-term debt. How muchlong-term debt must the company have paid off during the year? (Donot round intermediate calculations.) Debt retired $ d-2 During2017, the company raised $400 in new long-term debt. What was thecash flow to creditors? (Do not round intermediate calculations.)Cash flow to creditors $

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FINE 2000 Study Guide - Final Guide: Earnings Before Interest, Taxes, Depreciation, And Amortization, Inventory Turnover, Standard Deviation

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