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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(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
aa.4
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?
Nikal
1
Oakdale Fashions, Inc.’s, 2021 income statement is reported below. (Use corporate tax rate of 21 percent for your calculations.) Oakdale Fashions, Inc., Income Statement for 2021 Net sales (all credit) $ 580,000 Less: Cost of goods sold 221,000 Gross profits $ 359,000 Less: Other operating expenses 96,000 EBITDA $ 263,000 Less: Depreciation and amortization 15,600 EBIT $ 247,400 Less: Interest 81,500 EBT $ 165,900 Less: Taxes Net income $ Determine the firm's 2021 tax liability. Tax liability
A corporation has $50 billion of Earnings Before Interest and Taxes (EBIT) and $20 billion in interest expenses this year. How much interest expense can the company deduct from its EBIT in the current year? What happens if the company can’t deduct all of its interest expenses in the current year?
Cox Corporation recently reported an EBITDA of $58 million and $10 million of net income. The company has $13 million interest expense and the corporate tax rate is 40.0% percent. What was the company's depreciation and amortization expense? (Answers are in $ millions.) $35.00 $45.00 $48.00 $28.33 $53.00
during the 2019, rainbow umbrella corp. had sales of $920,000. cost of goods sold, administrative and selling expenses, and depreciation expense were $610, 000, $125, 000, and $155,000, respectively. in addition, the company had an interest expense of $57,000 and a tax rate of 21% . what is the company's net income for 2019? what is its operating cash flow? suppose the company paid out $53,000 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 was the net new long-term debt?

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