Quantitative Problem: Rosnan Industries 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current habilities Long-term debt Total liabilities Common stock Retained eamings Common equity Total liabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25) Net income Income Statements Dividends paid Addition to retained earnings Shares outstanding Price WACC 2019 $100 275 375 $750 2.300 $3,050 $150 75 150 $375 450 825 1.225 1.000 2,225 $3.050 2019 $2.155 1.250 $905 100 $805 63 $742 186 $357 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2.125 $85 50 75 $210 290 500 1.225 400 1.625 $2.125 2018 $1,500 1,000 $500 75 $425 46 $379 95 $284 $40 $236.25 100 $22.50 The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess cash Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCR Round your answer to the nearest cent.
Quantitative Problem: Rosnan Industries 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current habilities Long-term debt Total liabilities Common stock Retained eamings Common equity Total liabilities and equity Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest EBT Taxes (25) Net income Income Statements Dividends paid Addition to retained earnings Shares outstanding Price WACC 2019 $100 275 375 $750 2.300 $3,050 $150 75 150 $375 450 825 1.225 1.000 2,225 $3.050 2019 $2.155 1.250 $905 100 $805 63 $742 186 $357 $54 $600 100 $25.00 10.00% 2018 $85 300 250 $635 1,490 $2.125 $85 50 75 $210 290 500 1.225 400 1.625 $2.125 2018 $1,500 1,000 $500 75 $425 46 $379 95 $284 $40 $236.25 100 $22.50 The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess cash Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCR Round your answer to the nearest cent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below.
Assets
Cash and equivalents
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Total assets
Liabilities and Equity
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term debt
Total liabilities
Common stock
Retained earnings
Common equity
Total liabilities and equity
EBIT
Interest
EBT
Taxes (25%)
Net income
Balance Sheets
Sales
Operating costs excluding depreciation and
amortization
EBITDA
Depreciation and amortization
Income Statements
Shares outstanding
Price
WACC
Dividends paid
Addition to retained earnings
2019
$100
275
375
$750
2.300
$3,050
$150
75
150
$375
450
825
1,225
1.000
2,225
$3,050
2019
$2.155
1.250
$905
100
$805
63
$742
186
$557
$54
$600
100
$25.00
10.00%
2018
$85
300
250
$635
1,490
$2.125
$85
50
75
$210
290
500
1,225
400
1,625
$2.125
2018
$1,500
1,000
$500
75
$425
46
$379
95
$284
$45
$236.25
100
$22.50
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess cash
Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF Round your answer to the nearest cent.
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