Clorox Company is a leading producer of laundry additives,including Clorox liquid bleach. In the 6 months endedDecember 31, 2011, net sales of $2,526 million produced netearnings of $235 million. To calculate net earnings, Cloroxrecorded $89 million in depreciation and amortization. Otheritems of revenue and expense not requiring cash decreasednet earnings by $21 million. Dividends of $159 million werepaid during the period. Among the changes in balance sheetaccounts during the period were the following ($ in millions),as shown in the table.Accounts receivableInventories$35 Decrease$65 IncreaseAccounts payable and accrued liabilities $136 DecreaseIncome taxes payable$11 DecreaseCompute the net cash provided by operating activities usingthe indirect method.

Step 1: Definition of the Indirect MethodThe indirect method starts with net earnings and adjusts…

Answered: Clorox Company is a leading producer of…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

Disturbed, Inc., had the following operating results for the past year: sales = $22,616; depreciation = $1,480; interest expense = $1,192; costs = $16,575. The tax rate for the year was 38 percent. What was the company's operating cash flow? $2,089 $3,369 $4,761 $7,321 $3,213
Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $36 million. Included in the income was interest expense of $2,300,000. The company's tax rate was 40%. Total assets were $465 million, current liabilities were $108,000,000, and $71,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon? Enter your answer in whole dollar. Round "ROI" answer to two decimal places. Invested Capital $fill in the blank 1 ROI fill in the blank 2%
Nucor, a steel manufacturer, reported net income for 2008 of $1,831 million on sales of $23,663 million. Interest expense for 2008 was $135 million, and minority interest was $314 million for 2008. The income tax rate is 35 percent. Total assets were $9,826 million at the beginning of 2008 and $13,874 million at the end of 2008. Compute the rate of ROA for 2008 and disaggregate ROA into profit margin for ROA and asset turnover components.
Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $44 million. Included in the income was interest expense of $3,000,000. The company's tax rate was 40%. Total assets were $475 million, current liabilities were $109,000,000, and $70,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon? Enter your answer in whole dollar. Round "ROI" answer to two decimal places. Invested Capital $fill in the blank 1 ROI fill in the blank 2%
Arco Steel, Inc. generated total sales of $45,565,200 during fiscal 2010. Depreciation and amortization for the year totaled $2,278,260, and cost of goods sold was $27,339,120. Interest expense for the year was $9,641,300 and selling, general, and administrative expenses totaled $4,556,520 for the year. What is Arco’s EBIT for 2010? A) $9,641,300 B) $11,391,300 C) $13,275,030 D) $18,490,000
At the end of last year, Ralph Inc. reported the following income statement (in millions of dollars): Sales $3,000 Operating costs excluding depreciation 2,450 EBITDA $550 Depreciation 250 EBIT $300 Interest 124 EBT $176 Taxes (25%) 44 Net income $132 Looking ahead to the following year, the company's CFO has assembled this information: Year-end sales are expected to be 8% higher than the $3 billion in sales generated last year. Year-end operating costs, excluding depreciation, are expected to equal 65% of year-end sales. Depreciation is expected to increase at the same rate as sales. Interest costs are expected to remain unchanged. The tax rate is expected to remain at 25%. On the basis of that information, what will be the forecast for Ralphs' year-end net income? Enter your answer in millions. For example, an answer of $25,400,000 should be entered as 25.40. Do not round intermediate calculations. Round your answer to two decimal places. $( )million
Calculating ROA and Its Components. Nucor, a steel manufacturer, reported net income for 2008 of $1,831 million on sales of $23,663 million. Interest expense for 2008 was $135 million, and noncontrolling interest was $314 million for 2008. The income tax rate is 35%. Total assets were $9,826 million at the beginning of 2008 and $13,874 million at the end of 2008. Compute the rate of ROA for 2008 and disaggregate ROA into profit margin for ROA and assets turnover components.
Čardinal Industries had the following operating results for 2018: Sales = $34,621; Cost of goods sold Dividends paid = $2,023. At the beginning of the year, net fixed assets were $19,970, current assets were $7,075, and current liabilities were $4,01O. At the end of the year, net fixed assets were $24,529, current assets were $8,702, and current liabilities were $4,700. The tax rate for 2018 was 25 percent. $24,359; Depreciation expense = $6,027; Interest expense $2,725; %3D a. What is net income for 2018? (Do not round intermediate calculations.) b. What is the operating cash flow for 2018? (Do not round intermediate calculations.) c. What is the cash flow from assets for 2018? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) d- If no new debt was issued during the year, what is the cash flow to creditors? (Do not 1. round intermediate calculations.) d- If no new debt was issued during the year, what is the cash flow to stockholders? (Do…
Cold Duck Manufacturing Inc. reported sales of $743,000 at the end of last year, but this year, sales are expected to grow by 10%. Cold Duck expects to maintain its current profit margin of 24% and dividend payout ratio of 25%. The following information was taken from Cold Duck’s balance sheet: Total assets: $475,000 Accounts payable: $65,000 Notes payable: $45,000 Accrued liabilities: $70,000 Based on the AFN equation, the firm’s AFN for the current year is_________. A positively signed AFN value represents: -a shortage of internally generated funds that must be raised outside the company to finance the company’s forecasted future growth. -a surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. -a point at which the funds generated within the firm equal the demands for funds to finance the firm’s future expected sales requirements. Because of its excess…
During the year, Belyk Paving Co. had sales of $2,350,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,310,000, $585,000, and $435,000, respectively. In addition, the company had an interest expense of $260,000 and a tax rate of 25 percent. The company paid out $385,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.) Calculate the firm's net new long-term debt added during the year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Net new long-term debt
Green Valley Farms had sales revenue of $95,000,000, cost of goods sold of $45,000,000, sales and administrative costs of $10,000,000, depreciation expense of $8,000,000, and a tax rate of 28%. What is the operating cash flow for the year? A company reported $145.78 million in sales revenue, with accounts receivable increasing by $29.87 million. Additionally, the company made a one-time credit sale adjustment of $6.45 million. How much cash did they receive from customers? Options: a. $175.32 million b. $119.33 million c. $129.78 million d. $136.42 million
Company DotThrive reported the following financial results. Operating income is $94.98 million and depreciation and amortization is $6.12 million. The company spent $13.99 million buying new equipment and sold $3.58 million old equipment (this is the after-tax salvage). Net working capital increased by $1.31 million from previous year. The company's tax bracket is 21%. What's the company's Free Cash Flow (FCF) for the year?

SEE MORE QUESTIONS

Recommended textbooks for you

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

SEE MORE TEXTBOOKS