Balance Sheets 2019 2018 Assets Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,300 1,490 Total assets $3,050 $2,125 Liabilities and Equity Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Total liabilities 825 500 Common stock 1,225 1,225 Retained earnings 1,000 400 Common equity 2,225 1,625 Total liabilities and equity $3,050 $2,125 Income Statements 2019 2018 Sales $2,065 $1,525 Operating costs excluding depreciation and amortization 1,250 1,000 EBITDA $815 $525 Depreciation and amortization 100 75 EBIT $715 $450 Interest 63 46 EBT $652 $404 Taxes (25%) 163 101 Net income $489 $303 Dividends paid $54 $48 Addition to retained earnings $435 $255 Shares outstanding 100 100 Price $25.00 $22.50 WACC 10.00% Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest cent. $ The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
Balance Sheets 2019 2018 Assets Cash and equivalents $100 $85 Accounts receivable 275 300 Inventories 375 250 Total current assets $750 $635 Net plant and equipment 2,300 1,490 Total assets $3,050 $2,125 Liabilities and Equity Accounts payable $150 $85 Accruals 75 50 Notes payable 150 75 Total current liabilities $375 $210 Long-term debt 450 290 Total liabilities 825 500 Common stock 1,225 1,225 Retained earnings 1,000 400 Common equity 2,225 1,625 Total liabilities and equity $3,050 $2,125 Income Statements 2019 2018 Sales $2,065 $1,525 Operating costs excluding depreciation and amortization 1,250 1,000 EBITDA $815 $525 Depreciation and amortization 100 75 EBIT $715 $450 Interest 63 46 EBT $652 $404 Taxes (25%) 163 101 Net income $489 $303 Dividends paid $54 $48 Addition to retained earnings $435 $255 Shares outstanding 100 100 Price $25.00 $22.50 WACC 10.00% Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest cent. $ The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
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
Related questions
Question
| Balance Sheets | ||
| 2019 | 2018 | |
| Assets | ||
| Cash and equivalents | $100 | $85 |
| Accounts receivable | 275 | 300 |
| Inventories | 375 | 250 |
| Total current assets | $750 | $635 |
| Net plant and equipment | 2,300 | 1,490 |
| Total assets | $3,050 | $2,125 |
| Liabilities and Equity | ||
| Accounts payable | $150 | $85 |
| Accruals | 75 | 50 |
| Notes payable | 150 | 75 |
| Total current liabilities | $375 | $210 |
| Long-term debt | 450 | 290 |
| Total liabilities | 825 | 500 |
| Common stock | 1,225 | 1,225 |
| 1,000 | 400 | |
| Common equity | 2,225 | 1,625 |
| Total liabilities and equity | $3,050 | $2,125 |
| Income Statements | ||
| 2019 | 2018 | |
| Sales | $2,065 | $1,525 |
| Operating costs excluding |
1,250 | 1,000 |
| EBITDA | $815 | $525 |
| Depreciation and amortization | 100 | 75 |
| EBIT | $715 | $450 |
| Interest | 63 | 46 |
| EBT | $652 | $404 |
| Taxes (25%) | 163 | 101 |
| Net income | $489 | $303 |
| Dividends paid | $54 | $48 |
| Addition to retained earnings | $435 | $255 |
| Shares outstanding | 100 | 100 |
| Price | $25.00 | $22.50 |
| WACC | 10.00% |
Using the financial statements given above, what is Rosnan's 2019
$
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
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