Given the information below, determine the free cash flow for 2014.Income Statement (In Thousands)SalesOperating costsEBITDADepreciationEarnings before interest and taxesInterest (8%)Earnings before taxesTaxes (40%)Net incomeCommon dividends20142013$24,800.00$22,000.00$14,880.00 $13,200.00$9,920.00 $8,800.00-$920.00$800.00$9,000.00 $8,000.00-$112.00-$160.00$8,888.00 $7,840.00-$3,555.20 -$3,136.00$5,332.80 $4,704.00$2,082.00 $2,352.00 Balance Sheet (In Thousands)Assets:Cash and marketable securitiesAccounts receivableInventoriesTotal current assetsNet fixed assets (PP&E)Total assetsLiabilities and equity.Accounts payableNotes payableAccrualsTotal current liabilitiesLong-term bondsTotal liabilitiesCommon stock (2 million shares)Retained earningsTotal common equityTotal liabilities and equityO $2,939O $2,368O $2,749O $3.028O $2,86820142013$1,200.00$1,000.00$5,565.00$5,000.00$7,440.00 $6,000.00$14,205.00 $12,000.00$9,200.00$8,000.00$23,405.00 $20,000.00$6,500.00 $6,000.00$400.00 $1,000.00$3,254.20 $3,000.00$10,154.20 $10,000.00$1,000.00 $1,000.00$11,154.20 $11,000.00$6,000.00 $6,000.00$6,250.80 $3,000.00$12.250.80 $9,000.00$23.405.00 $20.000.00

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Description: Given the information below, determine the free cash flow for 2014.Income Statement (In Thousands)SalesOperating costsEBITDADepreciationEarnings before interest and taxesInterest (8%)Earnings before taxesTaxes (40%)Net incomeCommon dividends20142013

Free cash flow for the firm refers to the money that the company generates throughout the period…

Business

Finance

Given the information below, determine the free cash flow for 2014. Income Statement (In Thousands) 2014 2013 Sales $24,800.00 $22,000.00 $14,880.00 $13,200.00 $9,920.00 $8,800.00 -$920.00 -$800.00 $9,000.00 $8,000.00 -$112.00 -$160.00 Operating costs EBITDA Depreciation Earnings before interest and taxes Interest (8%) Earnings before taxes Taxes (40%) Net income Common dividends $8,888.00 $7,840.00 -$3,555.20 -$3,136.00 $5,332.80 $4,704.00 $2,082.00 $2,352.00

Given the information below, determine the free cash flow for 2014. Income Statement (In Thousands) 2014 2013 Sales $24,800.00 $22,000.00 $14,880.00 $13,200.00 $9,920.00 $8,800.00 -$920.00 -$800.00 $9,000.00 $8,000.00 -$112.00 -$160.00 Operating costs EBITDA Depreciation Earnings before interest and taxes Interest (8%) Earnings before taxes Taxes (40%) Net income Common dividends $8,888.00 $7,840.00 -$3,555.20 -$3,136.00 $5,332.80 $4,704.00 $2,082.00 $2,352.00

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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Concept explainers

Completing the Accounting cycle

An accounting cycle is a multiple-step process that analyzes, verify, record and summarize the entities financial data. The accounting cycle starts when the transaction occurs between two parties and ends when the transaction is completed. The accounting cycle changes the entity's financial position as it involves identifying, verifying, and recording the financial transaction in chronological order. Financial position is the summary of business transactions that occurred throughout the particular accounting period. The accounting cycle recurs at the beginning of each financial year.

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Question

Given the information below, determine the free cash flow for 2014.
Income Statement (In Thousands)
Sales
Operating costs
EBITDA
Depreciation
Earnings before interest and taxes
Interest (8%)
Earnings before taxes
Taxes (40%)
Net income
Common dividends
2014
2013
$24,800.00
$22,000.00
$14,880.00 $13,200.00
$9,920.00 $8,800.00
-$920.00
$800.00
$9,000.00 $8,000.00
-$112.00
-$160.00
$8,888.00 $7,840.00
-$3,555.20 -$3,136.00
$5,332.80 $4,704.00
$2,082.00 $2,352.00

Balance Sheet (In Thousands)
Assets:
Cash and marketable securities
Accounts receivable
Inventories
Total current assets
Net fixed assets (PP&E)
Total assets
Liabilities and equity.
Accounts payable
Notes payable
Accruals
Total current liabilities
Long-term bonds
Total liabilities
Common stock (2 million shares)
Retained earnings
Total common equity
Total liabilities and equity
O $2,939
O $2,368
O $2,749
O $3.028
O $2,868
2014
2013
$1,200.00
$1,000.00
$5,565.00
$5,000.00
$7,440.00 $6,000.00
$14,205.00 $12,000.00
$9,200.00
$8,000.00
$23,405.00 $20,000.00
$6,500.00 $6,000.00
$400.00 $1,000.00
$3,254.20 $3,000.00
$10,154.20 $10,000.00
$1,000.00 $1,000.00
$11,154.20 $11,000.00
$6,000.00 $6,000.00
$6,250.80 $3,000.00
$12.250.80 $9,000.00
$23.405.00 $20.000.00

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