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cash flow to the firm in 2022 using EBIT

cash flow to the firm in 2022 using EBIT

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2022 2021 Sales 720,000 288,000 432,000 600,000 240,000 COGS Gross Profit 360,000 SG & A Depreciation 84,000 72,000 96,000 120,000 228,000 36,000 192,000 57,600 192,000 24,000 EBIT Interest Expense Earnings before taxes Taxes (30%) Earnings after Taxes 168,000 50,400 117,600 134,400 Required: 1. Calculate free cash flow to the firm in 2022 using EBIT
Transcribed Image Text:2022 2021 Sales 720,000 288,000 432,000 600,000 240,000 COGS Gross Profit 360,000 SG & A Depreciation 84,000 72,000 96,000 120,000 228,000 36,000 192,000 57,600 192,000 24,000 EBIT Interest Expense Earnings before taxes Taxes (30%) Earnings after Taxes 168,000 50,400 117,600 134,400 Required: 1. Calculate free cash flow to the firm in 2022 using EBIT
The following balance sheet and income statement were taken from the records of Y Company 2022 2021 ASSETS Cash 24,000 72,000 12,000 36,000 72,000 Accounts Receivable Inventory 96,000 192,000 960,000 Current Assets 120,000 720,000 GROSS PPE Accumulated Depreciation (456,000) 696,000 (336,000) TOTAL ASSETS 504,000 LIABILITIES Accounts Payable 48,000 48,000 24,000 Short-term Debt 48,000 96,000 273,600 120,000 206,400 696,000 Current Liabilities 72,000 Long-term Debt 240,000 Common Stock 120,000 Retained Earnings 72,000 TOTAL LIABILITIES AND EQUITY 504,000
Transcribed Image Text:The following balance sheet and income statement were taken from the records of Y Company 2022 2021 ASSETS Cash 24,000 72,000 12,000 36,000 72,000 Accounts Receivable Inventory 96,000 192,000 960,000 Current Assets 120,000 720,000 GROSS PPE Accumulated Depreciation (456,000) 696,000 (336,000) TOTAL ASSETS 504,000 LIABILITIES Accounts Payable 48,000 48,000 24,000 Short-term Debt 48,000 96,000 273,600 120,000 206,400 696,000 Current Liabilities 72,000 Long-term Debt 240,000 Common Stock 120,000 Retained Earnings 72,000 TOTAL LIABILITIES AND EQUITY 504,000
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