Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?
The company issues new common stock.
_______ income is derived from the firm's regular core business. _______ income is calculated as Revenues-Operating costs. _______ costs do not include interest or taxes.
Operating
A start-up firm is making an initial investment in new plant and equipment. Assume that currently its equipment must be depreciated on a straight-line basis over 10 years, but Congress is considering legislation that would require the firm to depreciate t
The firm's cash flow would increase.
Brown Fashions Inc.'s December 31, 2011 balance sheet showed total common equity of $4,050,000 and 200,000 shares of stock outstanding. During 2011, the firm had $450,000 of net income, and it paid out $100,000 as dividends. What was the book value per sh
22.00
1. Return earnings= Net Income-Dividends
2. Total Equity=Equity+Return earnings
3. BVPS= Total Equity/Number of shares.
Prezas Company's balance sheet showed total current assets of $4,250, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and t
3,025
Net operating working capital= current assets-(total current liabilities- Notes payable)
Vasudevan Inc. recently reported operating income of $2.75 million, depreciation of $1.20 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled $0.6 million. How much was its free cash flow,
2.25
Free Cash Flow= [EBIT(1-tax)+deprecation]-[capital exprediture - change in net capital]
How much net operating working capital does the firm have?
Current assets=1,300
Total current liabilities= 2,300
Notes payable=350
Total assets= 2,300
Current Liabilities
750
Net Operating Working Capital
= (Cash + Accounts Receivable + Inventories)
? (Accounts Payable + Accrued Expenses)
*C.F. Lee Inc has the following income statement. How much after-tax operating income does the firm have?
Sales=$2,850.00
Costs=1,850.00 Depreciation=192.00
EBIT $808.00
Interest ex.=285.00
EBT=523.00
Taxes (35%)=183.05
Net income=$ 339.95
ATOI= Operating Income-Taxes
525.20
Garner Grocers began operations in 2008. Garner has reported the following levels of taxable income (EBT) over the past several years. The corporate tax rate was 34% each year. Assume that the company has taken full advantage of the Tax Code's carry-back,
Year Taxable Income
2008 -$3,200,000
2009 $200,000
2010 $500,000
2011 $2,800,000
102, 000
Rao Construction recently reported $20.50 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state
4.90