2. For the year 2021, Rattner Robotics had $5 million in operating income (EBIT). Its depreciationexpense was $1.5 million, its interest expense was $1 million, and its corporate tax rate was 35%.At the end of year 2021, it had $10 million in operating current assets, $3 million in accountspayable, $1 million in accruals, and $2 million in notes payable. Assume Rattner has no excesscash and no other current liabilities. Assume that Rattner's only noncash item was depreciation.a) What was the company's net income for the year 2021?tion bona 158b) What was its net operating working capital (NOWC) for the year 2021?c)Rattner reported $4 million in capital expenditure for the year of 2021. Rattner's NOWC forthe prior year (year 2020) is $5.5 million. What is the company's free cash flow (FCF) for theyear of 2021? (Hint: you need your results from part b to calculate this question).

Free Cash Flow :— It refers to the surplus cash flows in a company after meeting all its operating…

Answered: 2. For the year 2021, Rattner Robotics…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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10 Antignolo Enterprises, Inc. (a corporation) reported the following information for 2020. Don't consider any other information. Antignolo will pay Federal Income Tax on: Sales $ 380,000 Cost of goods sold $ Operating expenses $ Interest Expense Dividend income $ 250,000 a. $ b. $ 45,000 85,000 15,000 73,000 $ c. $ d. $ 44,000 28,000 130,000 33,500 Dividends paid $ 10,000 e. $ Net Income $ 33,500
During 2018, Raines Umbrella Corporation had sales of $738,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $562,000, $99,000, and $133,000, respectively. In addition, the company had an interest expense of $104,000 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corporation paid out $17,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the firm's net new long-term debt? Multiple Choice O $77,450 O $44,000 O $94,000 $0 O $19,500
Patterson Brothers recently reported an EBITDA of $8.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Write out your answer completely.
(Working with the income statement) At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,522,000 in revenues, $3,362,000 in cost of goods sold, $458,000 in operating expenses which included depreciation expense of $140,000, and a tax liability equal to 34 percent of the firm's taxable income. Sandifer Manufacturing Co. plans to reinvest $52,000 of its earnings back into the firm. What does this plan leave for the payment of a cash dividend to Sandifer's stockholders? Complete the income statement for Sandifer Manufacturing Co.: (Round to the nearest dollar.) Revenues = Less: Cost of Goods Sold = Less: Operating Expenses Less: Interest Expense Less: Income Taxes = = $ $ $ $ Equals: Gross Profit = ... Equals: Net Operating Income = 0 Equals: Earnings before Taxes Equals: Net Income = = $ GA GA $
Edwards Electronics recently reported $15,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was its net operating profit after taxes (NOPAT)? Select the correct answer. a. $6,324.00 b. $6,349.50 Oc$6,273.00 O d. $6,298.50 e. $6,375.00
Dietrich Corp. disclosed the following information for 2021. The firm issued $65,000 new equity and $4,790 in dividends. The firm acquired $23,186 in new fixed assets and sold $17,600 of old fixed assets. Net working capital increased by $2,470 during the year. Dietrich Corp. had sales revenue of $264,596, cost of goods sold of $63,864, selling expenses of $53,200, depreciation of $6,780, and tax rate is 20%. a) What is the cash flow from assets of Dietrich Corp. in 2021? b) What is the cash flow to creditors of Dietrich Corp. in 2021? without excel
orking with the income statement) At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,540,000 in revenues, $3,332,000 in cost of goods sold, $455,000 in erating expenses which included depreciation expense of $144,000, and a tax liability equal to 34 percent of the firm's taxable income. Sandifer Manufacturing Co. plans to reinvest $52.000 its earnings back into the firm, What does this plan leave for the payment of a cash dividend to Sandifer's stockholders? Complete the income statement for Sandifer Manufacturing Co.: (Round to the nearest dollar) 4,540,000 3,332,000 Revenues Less: Cost of Goods Sold Less: Operating Expenses- Less: Interest Expense $ Less: Income Taxes $ $ $ Equals: Gross Profit 455,000 Equals: Net Operating income- 이 $ $ $ $ 1,208,000 753,000 Equals: Earings before Taxes 256,020 Equals: Net Income 5 496,080 The amount that the company will be able to pay as a cash dividend is 5 (Round to the nearest dollar) 753,000
Pearson brothers recently reported an EDITDA of $7.5 million and net income of $1.8 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was it's charge for depreciation and amortization?
During 2018, Raines Umbrella Corporation had sales of $749,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $576,000, $101,000, and $131,000, respectively. In addition, the company had an interest expense of $99,000 and a tax rate of 40 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corporation paid out $16,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the firm's net new long-term debt?
Camio Inc reported a net income after tax of $1.3 Billion for the year 2029. During the same year, they declared and paid a cash dividend of $300 Million but forgot to record it. The corporate tax rate was 30%. What will be the new net income after tax in Billions after factoring the declaration of dividends? A)Unchanged B)$1.00 Billion C)$1.60 Billion D)$1.09 Billion
The following information relates to Sandhill Corporation's transactions during 2023, its first year of operations. 1. 2. 3. 4. 5. 6. Income before income tax on the income statement for 2023 was $56,000. Income before income tax ($56,000 above) is net of a loss due to the writedown of land of $48,000. Sandhill reported a tax-deductible financing charge of $6,300 on its 2023 statement of retained earnings. The charge is for interest on a financial instrument that is legally debt, but in substance is equity for financial reporting purposes. The tax rate enacted for 2023 and future years is 30%. Because this was Sandhill's first taxation year, no instalments on account of income taxes were required or paid by Sandhill. Differences between the 2023 GAAP amounts and their treatment for tax purposes were as follows: a. Warranty expense accrued for financial reporting purposes amounted to $16,000. Warranty payments deducted for taxes amounted to $12,800. Warranty liabilities were classified…
During the year, Pharr Corporation had sales of $459,000. Costs were $388,000 and depreciation expense was $102,800. In addition, the company had an interest expense of $79.250 and a tax rate of 21 percent. What is the operating cash flow for the year? Ignore any tax loss carry-forward provisions. Multiple Choice $72,733 $77,768 O $15,071

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