At the beginning of the year, a firm had total assets of $51,400, fixed assets of $32,800, and current liabilities of $13,280. At the end of the year, the current assets are $14,800, the fixed assets are $34,100, and the current liabilities are $14,210. What is the change in net working capital for the year? Answer:

At the beginning of the year, a firm had total assets of $51,400, fixed assets of $32,800, and current liabilities of $13,280. At the end of the year, the current assets are $14,800, the fixed assets are $34,100, and the current liabilities are $14,210. What is the change in net working capital for the year? Answer:

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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A company reports the following for the prior year: $1.6 million in sales $1 million in total assets $160, 000 in net income $800, 000 in equity (at the beginning of this prior year) $520, 000 in current assets $480, 000 in fixed assets $48, 000 ir accounts payable $32,000 in accrued liabilities The company projects that the sales will grow at 30 % . Calculate the AFN or this company assuming 80% retention ratio. a. $134,425 b. $127,650 c. $109,600 d. $76,950
Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %
Mason Corporation had $1,027,000 in invested assets, sales of $1,215,000, operating income amounting to $236,000, and a desired minimum return on investment of 15%. The investment turnover for Mason Corporation is a.0.95 b.1.42 c.1.77 d.1.18
Consider a company with earnings before interest and taxes (EBIT) of $450,000, tax rate of 16%, depreciation and amortization expenses of $60,000, capital expenditures of $80,000, acquisition expenses of $30,000 and change in working capital of $40,000. How much is its free cash flow during that period? Round to the nearest cent.
You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $5,250,000 this year. Depreciation, the increase in net working capital, and capital spending were $345,000, $175,000, and $595,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 per year, and NWC will grow at 10 per year. The company has $29,500,000 in debt and 500,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.3 percent, indefinitely. The company's WACC is 9.45 percent and the tax rate is 25 percent. What is the price per share of the company's stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Share price
Use this information for Mason Corporation to answer the question that follow. Mason Corporation had $1,118,000 in invested assets, sales of $1,204,000, income from operations amounting to $232,000, and a desired minimum return of 13%. Round your answer to two decimal places. The investment turnover for Mason Corporation is Oa. 0.86 Ob. 1.62 Oc. 1.08 Od. 1.29 Previous Next 7:34 PM CP 12/13/2020 DELL
You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $2,890,000 this year. Depreciation, the increase in net working capital, and capital spending were $227,000, $92,000, and $425,000, respectively. You expect that over the next five years, EBIT will grow at 18 percent per year, depreciation and capital spending will grow at 23 percent per year, and NWC will grow at 13 percent per year. The company currently has $15.5 million in debt and 415,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company's WACC is 8.9 percent and the tax rate is 23 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price
A firm has a return on equity of 21 percent. The total asset turnover is 2.9 and the profit margin is 8 percent. The total equity is $8,000. What is the amount of the net income?
Last year, McGinley Company had total equity of $600,000, a return on assets of 10%, and a return on equity of 15%. What was the amount of McGinley's total assets?
King Industries has net working capital of $17,700, current assets of $39,800, equity of $55,400, and long-term debt of $11,800. What is the amount of the net fixed assets?
A firm had after-tax income last year of $3.4 million. Its depreciation expenses were $0.6 million, and its total cash flow was $3.4 million. What happened to net working capital during the year? Note: Enter your answer in millions rounded to 1 decimal place.
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