Financial information for Powell Panther Corporation is shown below:Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars)SalesOperating costs excluding depreciation and amortizationEBITDADepreciation and amortizationEarnings before interest and taxes (EBIT)InterestEarnings before taxes (EBT)Taxes (25%)Net incomeAssetsCash and equivalentsAccounts receivableInventoriesTotal current assetsNet plant and equipmentTotal assetsCommon dividendsPowell Panther Corporation: Balance Sheets as of December 31 (millions of dollars)Liabilities and EquityAccounts payableAccrualsNotes payableTotal current liabilitiesLong-term bondsTotal liabilitiesCommon stockRetained earningsCommon equity2020: $2021: $b. What was the 2021 free cash flow?2021$2,875.02,444.0$ 431.086.0$345.063.3$281.7112.7$ 169.0$152.1$-Select-202146.0 $2020$2,500.02,125.0$ 375.075.0$300.055.0$ 245.098.0$147.0$117.6450.0540.0$1,036.0863.0$1,899.0$325.0219.057.5$ 601.5575.0$1,176.5661.561.0$722.5Total liabilities and equity$1,899.0Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash.202038.0375.0450.0$863.0750.0$1,613.0$250.0175.050.0$ 475.0500.0$ 975.0593.944.1$638.0$1,613.0$c. How would you explain the large increase in 2021 dividends?I. The large increase in net income from 2020 to 2021 explains the large increase in 2021 dividends.II. The large increase in EBIT from 2020 to 2021 explains the large increase in 2021 dividends.III. The large increase in sales from 2020 to 2021 explains the large increase in 2021 dividends.IV. The large increase in retained earnings from 2020 to 2021 explains the large increase in 2021 dividends.V. The large increase in free cash flow from 2020 to 2021 explains the large increase in 2021 dividends.

Free cashflow (FCF):Free cash flow is a financial statistic that shows how much cash a firm makes…

Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of doll 2021 $2,875.0 2,444.0 $ 431.0 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Assets Cash and equivalents Accounts receivable Inventories 55.0 $ 245.0 98.0 $ 147.0 Common dividends 152.1 $ 117.6 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock 86.0 $ 345.0 63.3 Retained earnings Common equity Total liabilities and equity $281.7 112.7 $ 169.0 2021 $ 46.0 450.0 540.0 $1,036.0 863.0 $1,899.0 2020 $2,500.0 2,125.0 $ 375.0 $325.0 219.0 57.5 $ 601.5 575.0 $1,176.5 661.5 61.0 $ 722.5 $1,899.0 75.0 $ 300.0 $38.0 375.0 450.0 $ 863.0 750.0 $1,613.0 $ 250.0 175.0 50.0 $ 475.0 500.0 $ 975.0 593.9 44.1 $ 638.0 $1,613.0

Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of doll 2021 $2,875.0 2,444.0 $ 431.0 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Assets Cash and equivalents Accounts receivable Inventories 55.0 $ 245.0 98.0 $ 147.0 Common dividends 152.1 $ 117.6 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock 86.0 $ 345.0 63.3 Retained earnings Common equity Total liabilities and equity $281.7 112.7 $ 169.0 2021 $ 46.0 450.0 540.0 $1,036.0 863.0 $1,899.0 2020 $2,500.0 2,125.0 $ 375.0 $325.0 219.0 57.5 $ 601.5 575.0 $1,176.5 661.5 61.0 $ 722.5 $1,899.0 75.0 $ 300.0 $38.0 375.0 450.0 $ 863.0 750.0 $1,613.0 $ 250.0 175.0 50.0 $ 475.0 500.0 $ 975.0 593.9 44.1 $ 638.0 $1,613.0

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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CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 448,600 297,150 151,450 98,600 5,000 47,850 19,276 $ 28,574 Cost of goods sold Gross profit Operating expenses Interest expense Profit before taxes Income tax expense Net profit Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Property, plant and equipment, net Total assets Req 1 and 2 Req 3 Req 4 CABOT CORPORATION Balance Sheet December 31 Liabilities and Equity Req 5 8,000 Accounts payable 8,800 Accrued wages payable 32,400 Income taxes payable 2,750 Share capital 150,300 Retained earnings $ 238,400 Total liabilities and equity Complete this question by entering your answers in the tabs below. Compute the current ratio and acid-test ratio. 36,150 Long-term note payable, secured by mortgage on property, plant and equipment Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days'…
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Philly Corporation Philly Corporation Income Statement Comparative Account Information Relating to Operations For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 2020 2019 Sales Revenue 680,000 Accounts receivable -net 78,000 65,000 Cost of goods sold 355,000 Prepaid insurance 5,000 6,000 Salaries expense 50,000 Equipment 111,100 122,400 Depreciation expense equipment 6,800 Accumulated Depreciation 13,800 14,600 Interest expense 8,000 Land 56,000 36,000 Bad debt expense 2,400 Accounts Payable 59,000 47,000 Loss on sale of equipment 4,800 Interest payable 600 1,500 Miscellaneous…
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he following information is related to the Doll Pty Ltd. Description 2018 2020 Total revenues (Sales) $2,580 $5,880 Total assets: Beginning of year 1,200 2,290 End of year 1120 2,381 The ratio of sales to assets for 2018 and 2020 will be: Select one: a. 2.22 And 2.52 b. 2.30 And 2.47 c. 1.11 And 1.26 d. 2.15 And 2.56
How much net income did Wolf Enterprises earn during 2021? Net income for 2021 was Cost of services sold Accumulated depreciation Selling, general, and administrative expenses Retained earnings, December 31, 2020 $ 14,500 Service revenue 40,800 Depreciation expense Other revenue 6,100 Dividends declared Income tax expense 2,700 Income tax payable 32,400 4,200 700 700 500 1,100
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BALANCE SHEET AT END OF YEAR (Figures in $ millions) Assets 2021 2022 Liabilities and Shareholders' Equity 2021 2022 Current assets $ 102 $ 200 Current liabilities $ 74 $ 96 Net fixed assets 920 1,020 Long-term debt 660 870 INCOME STATEMENT, 2022 (Figures in $ millions) Revenue $ 2,010 Cost of goods sold 1,090 Depreciation 410 Interest expense 252 g. Net fixed assets increased from $920 million to $1,020 million during 2022. What must have been South Sea’s gross investment in fixed assets during 2022?........... (M1)
The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 20 percent. Interest expense will remain constant, the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Sales Costs Other expenses Earnings before interest and taxes Interest expense Taxable income Taxes (24%) CROSBY, INCORPORATED 2021 Income Statement Net income Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory $31,335 69,745 $ 20,640 43,580 91,960 $747,000 582,000 18,000 FA $147,000 14,000 $ 133,000 31,920 $ 101,080 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Seved Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total $ 54,800 14,000 $ 68,800 MA000
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Enola Enterprises Income Statement Year Ended Ended June 30, 2020 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense 42,000 Advertising Expense 12,000 Depreciation Expense-Plant Assets 28,000 Total Operating Expenses Income From Operations Other Income (Expenses) Dividend Revenue Interest Expense Total Other Income (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income 10,800 -3,100 229,000 104,000 125,000 82,000 43,000 7,700 50,700 8,000 42,700 Additional data follow: a) Collections from customers are $13,000 more than sales. b) Dividend revenue, interest expense, and income tax expense equal their cash amounts. c) Payments to suppliers are the sum of cost of goods sold plus advertising expense. d) Payments to employees are $1,700 more than salaries expense. e) Cash payment for the acquisition of plant assets is $108,000.
Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends Addition to retained earnings Current assets Cash CROSBY, INCORPORATED 2023 Income Statement Accounts receivable Inventory Total Total assets Assets Fixed assets Net plant and equipment EFN $ 21,340 44,280 98,960 $ 164,580 $ 430,000 $ 28,203 65,807 $ 594,580 $ 754,000 589,000 25,000 $ 140,000 21,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2023 $ 119,000 24,990 $ 94,010 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 55,500 14,700 $ 70,200 $ 137,000 $ 118,000 269,380 $ 387,380 $ 594,580 If the firm is operating at full capacity and no new debt or equity is issued, what is the external financing needed to support the 25 percent growth rate in sales? Note: Do not round…

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