II. In 2020, Cane Manufacturing has CAPX of $140,000, Depreciation of $55,000, and EBIT of $480,000. The tax rate is 30%. The following 2019 and 2020 accounts are: Item Required cash Accounts receivable Inventories Accounts payable Accrued liabilities 2019 2020 50,000 60,000 200,000 215,000 300,000 335,000 100,000 120,000 40,000 50,000 a) What is the change in Net Operating Working Capital in 2020? b) What is the Enterprise Value Cash Flow in 2020?
II. In 2020, Cane Manufacturing has CAPX of $140,000, Depreciation of $55,000, and EBIT of $480,000. The tax rate is 30%. The following 2019 and 2020 accounts are: Item Required cash Accounts receivable Inventories Accounts payable Accrued liabilities 2019 2020 50,000 60,000 200,000 215,000 300,000 335,000 100,000 120,000 40,000 50,000 a) What is the change in Net Operating Working Capital in 2020? b) What is the Enterprise Value Cash Flow in 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer a and b pls
Transcribed Image Text:II.
In 2020, Cane Manufacturing has CAPX of $140,000, Depreciation of $55,000, and
EBIT of $480,000. The tax rate is 30%. The following 2019 and 2020 accounts are:
Item
Required cash
Accounts receivable
Inventories
Accounts payable
Accrued liabilities
2019
2020
50,000 60,000
200,000 215,000
300,000 335,000
100,000 120,000
40,000 50,000
a) What is the change in Net Operating Working Capital in 2020?
b) What is the Enterprise Value Cash Flow in 2020?
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