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FCF = EBIT (1 - T)
FCF =
FCF =
Depr.
Capital
- expenditures
e. Rattner has 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 the year. Last year's balance in retained earnings was $11.2 million and the firm
paid out dividends of $1.2 million during the year. Develop Rattner's end-of-the-year
Statement of Stockholder's Equity.
Change
in
- NOWC
Common Stock
Shares
Balances, beginning of year
Net income
Cash dividends
Addition to retained earnings
Balances, end of year
Retained
Amount Earnings
Total
Stockholders'
Equity
Problem 3-10 STATEMENT OF CASH FLOWS (Be sure to scroll down and do part b)
W.C. Cycling had $55,000 in cash at year end 2012 and $25,000 in cash at year end 2013.
The firm invested in property, plant and equipment totaling $250,000.
Cash flow from financing activities totaled +$170,000.
a. What was the cash flow from operating activities?
Problem 3-12
Bailey Corporation's financial statements (dollars and shares are in millions) are provided here.
Bailey Corporation
(in million of dollars)
Balance Sheets as of December 31
Assets
Cash and cash equivalents
Accounts receivable
Inventories
Total current assets
Net fixed assets
Total assets
Liabilities and equity
Accounts payable
Notes payable
Accruals
Total current liabilities
Long-term bonds
Total liabilities
Common stock
Retained Earnings
Total common equity
Total liabilities and equity
Income Statement for Year Ending
Sales
Expenses excl. depr & amort.
EBITDA
Depreciation and amortization
EBIT
Interest expense
EBT
Taxes (40%)
Net Income
Dividends paid
2013
$
$
$
$
$
$
$
2012
14,000 $
30,000
28,125
72,125 $
50,000
122,125 $
13,000
25,000
21,000
59,000
47,000
106,000
10,800
6,700
7,600
25,100
15,000
40,100
50,000
32,025
82,025
122,125
9,000
5,150
6,000
20,150
15,000
35,150
50,000
20,850
70,850
106,000
$
$
$
$
2013
$214,000
170,000
$44,000
5,000
$39,000
1,750
$37,250
14,900
$22,350
$11,175
a. What was the change in Bailey's net operating working capital from 2012 to 2013?
NOWC = Curr. Assets
- Accts. Pay.
Accruals
Cap Ex
e provided here.
012 to 2013?
NOWC
Problem 3-16
Laiho Industries December 31 Balance Sheets
(in thousands of dollars)
2013
2012
Assets
Cash and cash equivalents
Accounts receivable
Inventories
Total current assets
102,850 $
89,725
103,365
85,527
38,444
34,982
244,659 $
67,165
210,234
42,436
311,824 $
252,670
30,761 $
23,109
Accruals
30,477
22,656
Notes payable
16,717
14,217
Long-term debt
Total liabilities
Common stock
Retained Earnings
Total common equity
Total liabilities and equity
77,955 $
59,982
76,264
63,914
154,219 $
123,896
100,000
90,000
57,605
38,774
157,605 $
128,774
311,824 $
252,670
a. Sales for 2013 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depr. and
amortization amounted to 11% of net fixed assets, interest was $8,575,000, the corporate tax
rate was 40%, and Laiho pays 40% of its net income in dividends. Given this information,
construct Laihos 2013 income statement.
The input information required for the problem is outlined in the "Key Input Data" section below.
Using this data and the balance sheet above, we constructed the income statement shown below.
KEY INPUT DATA: Laiho Industries
Sales
EBITDA as % of sales
Depr. as a % of fixed assets
Tax rate
Interest expense
Dividend payout ratio
Common Stock
Balances, December 31, 2012
Common stock issue
2013 Net income
Cash dividends
Addition to retained earnings
Balances, December 31, 2013
Retained
Earnings
Total
Stockholders'
Equity