12. A firm's total Free Cash Flow forthe year equaled $4,400. Theyreported an EBIT of $5,000,Depreciation Expense of $1,200, andCapital Expenditures of $2,500. Theircorporate tax rate is 40%. How muchwas their change in net workingcapital for the year?Increase by $1700Decrease by $2700Increase by $3,100Decrease by $3,100None of the above

Free cash flow = $4400 EBIT = $5000 Depreciation = $1200 Capital expenditure = $2500 Tax rate = 40%…

12. A firm's total Free Cash Flow for the year equaled $4,400. They reported an EBIT of $5,000, Depreciation Expense of $1,200, and Capital Expenditures of $2,50O. Their corporate tax rate is 40%. How much was their change in net working capital for the year? * Increase by $1700 Decrease by $2700 Increase by $3,100 Decrease by $3,100 None of the above

12. A firm's total Free Cash Flow for the year equaled $4,400. They reported an EBIT of $5,000, Depreciation Expense of $1,200, and Capital Expenditures of $2,50O. Their corporate tax rate is 40%. How much was their change in net working capital for the year? * Increase by $1700 Decrease by $2700 Increase by $3,100 Decrease by $3,100 None of the above

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Dunder-Mifflin had Cash Flow from Assets of $55,000 last year with an Operating Cash Flow of $120,000 and a Change in Net Working Capital of a negative $35,000. What was their Capital Spending? A. -$30,000 B. -$210,000 C. $100,000 D. -$100,000
Company DotThrive reported the following financial results. Operating income is $94.98 million and depreciation and amortization is $6.12 million. The company spent $13.99 million buying new equipment and sold $3.58 million old equipment (this is the after-tax salvage). Net working capital increased by $1.31 million from previous year. The company's tax bracket is 21%. What's the company's Free Cash Flow (FCF) for the year?
Ehrlich & Czarnecki Consulting, Inc. recently reported the following information: Net income = $800,000 Sales = $4,200,000 Total Assets = $9.5 million Tax rate = 40% Interest expense = 20,000 Accounts Payable = 36,000 Notes Payable = 300,000 Accruals = 50,000 After-tax cost of capital = 11% What is the company’s EVA? $-296,358 $-223,540 $-452,391 $-488,029 None of the above is within $100 of the correct answer.
Pop Evil, Incorporated's, net income for the most recent year was $10, 114. The tax rate was 22 percent. The firm paid $3,455 in total interest expense and deducted $2,104 in depreciation expense. What was the cash coverage ratio for the year? Multiple Choice 6.43 times 5.36 times 6.86 times 10.36 times 5.16 times
Excel Online Structured Activity: Income and Cash Flow Analysis The Berndt Corporation expects to have sales of $11 million. Costs other than depreciation are expected to be 80% of sales, and depreciation expected to be $1.1 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 40%. Berndt has no debt. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $ b. Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What is Berndt's expected net cash flow? Round your answer to the nearest…
consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%. a. generate an income statement and show net income b. what is the company's operating cash flow? c. if there are 775.2 million shares outstanding, what is the EPS? d. if the company has a payout ratio of 20%, what is the dividends per share?
2. (10 percent) Wukong Inc. recently reported operating income (EBIT) of $3.75 million, depreciation of S1.40 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totaled S0.8 million. How much was its free cash flow. in millions?
For a firm facing a marginal income tax rate of 35%, what is the after-tax cash flow effect of: (a) a $1,900 increase in contribution margin during the year, and (b) a $800 increase in cash operating expenses? (Do not round intermediate calculations.) (a) Effect on after-tax cash flow to contribution margin (b) Effect on after-tax cash flow to cash operating expenses
Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $318,600,000, cost of goods sold of $134,300,000, sales and administrative costs of $39,600,000, depreciation expense of $64,800,000, and a tax rate of 40%. The operating cash flow is $ (Round to the nearest dollar.)
King Lyon has the following assets: Current assets Capital assets Total assets $3,280,000 8,150,000 $11,430,000 During 4 months of the year, current assets drop to $1,650,000 (total assets will then be $9,800,000). Its operating profit (EBIT) is expected to be $499,500. Its tax rate is 30 percent. Shares are valued at $20. Its capital structure is short-term financing at 3 percent and long-term financing of 30 percent equity, 70 percent debt at 4 percent. a. Calculate expected EPS if the firm is perfectly hedged. (Do not round intermediate calculations and round your final answer to 2 decimal places.) EPS $
RJS generated $78,000 net income this year. The firm's financial statements also show that its interest expense was $40,000, its marginal tax rate was 35 percent, and its invested capital was $1,000,000. If its average cost of funds is 11 percent, what was RJS's economic value added (EVA) this year? Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any. $ _______
Broward Manufacturing recently reported the following information: $507,000 10% Interest expense $187,590 $1,050,000 Accounts payable and accruals Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places. Net income ROA BEP: ROE: ROIC: % % %

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