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
Please answer the following questions:
Cash Flow to Creditors and Stockholders
As part of your analysis, you are required to investigate Carrium Insights Inc. cash flows and compute selected financial ratios using the financial statements provided
Required:
(a) Calculate the following for 2020:
- Operating Cash Flow - DO NOT ANSWER
- Net Capital Spending - DO NOT ANSWER
- Change in Net Working Capital - DO NOT ANSWER
- Cash Flow from Assets - DO NOT ANSWER
- Cash Flow to Creditors
- Cash Flow to Stockholders
Transcribed Image Text:CASE ANALYSIS - CARRIUM INSIGHTS INC.
The following comprehensive assessment is based on a continuing case study of Carrium Insights Inc.
The following financial statements have been provided:
Carrium Insights Inc.
Income Statement
For the year ended December 31, 2020
2020
('000s)
2,800
Sales
Cost of Goods Sold
Selling & Marketing Costs
Admin. Expenses
Depreciation Expense
Eamings before Interest & Taxes
Interest Expense
(1,400)
(75)
(25)
(50)
1,250
(20)
1,230
Taxable Income
Taxation (20%)
Net Income
(246)
984
Dividends (50%)
Addition to Retained Eamings
492
492
Carrium Insights Inc.
State ment of Financial Positi on
As at December 31, 2019 & 2020
2019
2020
2019
2020
('000s)
('000s)
('000s)
('000s)
ASSETS
LIABILITIES & EQUITY
Current Asse ts
Current Liabilities
Inventories
600
680
Accounts Payables
Nates Payables
1,100
1,360
Accounts Receivables
300
340
700
860
1,340
2,360
Cash & Equivalents
1, 100
1,800
2,220
2,000
Non-current Liabilites
770
568
Non Current Asse ts, Net
1,870
2,240
Total Liabilities
2,570
2,788
Equity
Common Stock
820
840
Retained Eamings
Total Equity
480
972
1,300
1,812
TOTAL ASSETS
3,870
4,600
TOTAL LIAB. & EQUITY
3,870
4,600
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