A firm has total assets of $7,560,000 and current assets of $1,389,000. Cash makes up 20% of current assets and accounts receivable makes up 5% of current assets. The firm's gross plant and equipment is $9,870,000. What is the firm's balance of depreciation? O $3,699,000 O $2,310,000 O $6,171,000 O $1,389,000

A firm has total assets of $7,560,000 and current assets of $1,389,000. Cash makes up 20% of current assets and accounts receivable makes up 5% of current assets. The firm's gross plant and equipment is $9,870,000. What is the firm's balance of depreciation? O $3,699,000 O $2,310,000 O $6,171,000 O $1,389,000

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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Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $310,000,000, cost of goods sold of $134,000,000, sales and administrative costs of $40,100,000, depreciation expense of $67,000,000, and a tax rate of 40%.
Xanu Company's current value of operations is $4,079 million, with $679 million due to free cash flows occurring in Years 1 to 5, and 3,400 million due to free cash flows beyond Year 5 (the horizon date). What percent of value is due to expected long-term cash flows occurring beyond the horizon date?
Consider the following information from the Income Statement of Production Ltd. on 31st December 2022 (accounting year-end): Operating profit equals £30,000 and depreciation expense equals £2,000. In addition, consider the following information from the Statement of Financial Position of Production Ltd.: Trade Receivables Trade Payables 31st December 2021 31st December 2022 £ £ 2,500 9,000 32,000 12,000 Additional information: • Tax paid on cash during the current accounting year amounts to £12,500 • Gain on asset disposal equals £1,000. Considering all the previous information from Production Ltd., which of the following statements is true on 31st December 2022? O a. Production Ltd. shows a negative net cash flow from operating activities which equals -£8,000. O b. Production Ltd. shows a positive net cash flow from operating activities which equals £3,000. O c. The net cash flow from operating activities equals £0 O d. None of the answers is true.
Sweeter Enterprises Inc. has cash flows from operating activities of $365,000. Cash flows used for investments in property, plant, and equipment totaled $77,000, of which 75% of this investment was used to replace existing capacity. a. Determine the free cash flow for Sweeter Enterprises Inc.
Suppose a firm has the following information: Cash = $500,000; short-term investments = $2.5 million; accounts receivable = $1.2 million; net plant and equipment = $7.8 million. How much is tied up in operating current assets?
A firm has recorded EBIT at $1,800, depreciation at $600, EBT at $1,700 and a tax rate of 40%. Find the operating cash flows for this firm. Hin #1t: Operating CF = EBIT + depreciation - tax. Hint #2: Tax = EBT * tax rate.
Suppose Canwest Global Communications Corp. reported net cash used by operating activities of $127,537,580 and sales revenue of $3,498,299,980 during 2022. Cash spent on plant asset additions during the year was $96,782,600. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Free cash flow $
2
Suppose Canwest Global Communications Corp. reported net cash used by operating activities of $107,675,170 and sales revenue of $2,953,482,770 during 2022. Cash spent on plant asset additions during the year was $81,709,900. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow $ 25,965,270 %24
Given the following information, construct the firm’s balance sheet: Cash and cash equivalents $ 530,000 Accumulated depreciation on plant and equipment 1,050,000 Plant and equipment 4,760,000 Accrued wages 350,000 Long-term debt 4,860,000 Inventory 7,000,000 Accounts receivable 4,140,000 Preferred stock 620,000 Retained earnings 8,166,000 Land 2,630,000 Accounts payable 1,730,000 Taxes due 110,000 Common stock $ 18 par Common shares outstanding 98,000 Current portion of long-term debt $ 410,000 Round your answers to the nearest dollar. Corporation X Balance Sheet as of XX/XX/XX Assets Liabilities and Owners' Equity Cash and cash equivalents $ Accounts payable $ Accounts receivable Taxes due Inventory Accrued wages Total current assets $ Current portion of long-term debt $ Land Total current liabilities Plant and equipment Long-term debt…
Use the following information to compute net investment cash flow for a firm: Net income for the year is $43,900 Account receivable increased by $10,420 Inventory increased by $1,875 Depreciation expense for the year is $8,000 Account payable decreased by $5,782 Other current liabilities increased by $3,500 Taxes payable decreased by $1,970 Old equipment with a book value of $2,200 was sold for $1,325 Old appliances were sold for $24,000 at a gain of $4,800 A new machine was purchased for $10,000 1,000 shares of common stock were issued at par value of $10 each and sold at pay (for $10 each) Declared and paid dividends of $5,000 Reimbursed $7,000 of an outstanding loan’s capital
The working capital provided from operations in Seat’s Statement of Cash Flow for 20x2 was $8,000,000. For 20x2 depreciation on fixed assets was a $3,800,000, amortization of goodwill was $100,000, and dividends on common stock were $2,000,000. Based on the information given above, seat’s net income for 20x2 was............. a. $ 2,100,000 b. $ 4,100,000 c. $ 8,000,000 d. $ 11,900,000

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