a) What is YAVIS Corp's Free Cash Flow to the firm for 20X2? b) What is YAVIS Corp's Free Cash Flow to Equity for 20X2?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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8. Use the following data in in the back for YAVIS Corp for the next 2 questions
Balance Sheets - as of 5/1/2oxX (all numbers in $$Millions)
Year ending 5/1/
Cash
Accounts Receivables
Inventory
Current Assets
Gross Fixed Assets
Accumulated Depreciation
Net Fixed Assets
Total Assets
20X1
20X2
100
120
140
160
210
190
450
470
2,000
1,400
2,330
1,600
730
600
1,050
1,100
Accounts Payables
Notes Payables
100
140
200
210
Current Liabilities
300
350
Long-term Debt
210
300
Common Stock
240
200
Retained Earnings
300
350
Income Statements
For Year Ending 5/1/
20X1
20X2
1,535
900
Sales
1,780
1,000
780
-Cost of Goods Sold
Gross Profit
Depreciation Expense
Selling, General and Administrative Expenses
Earnings Before Interest and Taxes (Operating Profit)
Interest Expense
Earnings before Tax
Tax (20%)
635
240
200
250
300
145
280
20
30
125
250
25
50
Net Income
100
200
Dividends paid
a) What is YAVIS Corp's Free Cash Flow to the firm for 20X2?
b) What is YAVIS Corp's Free Cash Flow to Equity for 20X2?
75
150
Transcribed Image Text:8. Use the following data in in the back for YAVIS Corp for the next 2 questions Balance Sheets - as of 5/1/2oxX (all numbers in $$Millions) Year ending 5/1/ Cash Accounts Receivables Inventory Current Assets Gross Fixed Assets Accumulated Depreciation Net Fixed Assets Total Assets 20X1 20X2 100 120 140 160 210 190 450 470 2,000 1,400 2,330 1,600 730 600 1,050 1,100 Accounts Payables Notes Payables 100 140 200 210 Current Liabilities 300 350 Long-term Debt 210 300 Common Stock 240 200 Retained Earnings 300 350 Income Statements For Year Ending 5/1/ 20X1 20X2 1,535 900 Sales 1,780 1,000 780 -Cost of Goods Sold Gross Profit Depreciation Expense Selling, General and Administrative Expenses Earnings Before Interest and Taxes (Operating Profit) Interest Expense Earnings before Tax Tax (20%) 635 240 200 250 300 145 280 20 30 125 250 25 50 Net Income 100 200 Dividends paid a) What is YAVIS Corp's Free Cash Flow to the firm for 20X2? b) What is YAVIS Corp's Free Cash Flow to Equity for 20X2? 75 150
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