5Edmonds Industries is forecasting the following income statement:SalesOperating costs (excl. Depr. & Amort.)EBITDADepreciationEBITInterestEBTTaxes (40%)Net income$10,000,0005,500,0004,500,0001,200,000$ 3,300,000500,000$ 2,800,0001,120,000$ 1,680,000The CEO would like to see higher sales and a forecasted net income of $2,100,000. Assume thatoperating costs (excluding depreciation and amortization) are 55% of sales and that depreciationand amortization and interest expenses will increase by 6%. The tax rate, which is 40%, will remainthe same. (Note that while the tax rate remains constant, the taxes paid will change.) What level ofsales would generate $2,100,000 in net income?

Net income required=$2100000Tax rate=40%Operating expenses=55% of salesDepreciation and interest…

Answered: Sales $10,000,000 Operating costs…

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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ok ences Mc Graw Hill Graff, Incorporated, has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Operating cash flow 2 #3 3 89 $ 4 000 000 % 5 8
Peace Inc. has the following information: Sales P 480,000 Operating expenses 300,000 Net loss (60,000) How much is the entity's cost of sales? A. 340,000B. 360,000C. 240,000D. 420,000
Crystal rock holdings $510000 of sales $262500 off operation cost other than depreciation $10200 of depreciation The company had $600000 off bond outstanding that carry a 6.8% interest rate and its income tax rate was 40% What was the firms times interest earned?
Sales : $250,000Costs : $134,000Depreciation : $10,200Operating expenses : $6,000Interest expenses : $20,700Taxes : $18,420Dividends : $10,600Addition to Retained Earnings : $50,080Long term debt repaid : $9,300New Equity issued : $8,470New fixed assets acquired : $15,000 You are required to:i) Calculate the operating cash flow ii) Calculate the cash flow to creditors iii) Calculate the cash flow to shareholders
Net present value method The following data are accumulated by Waiola Company in evaluating the purchase of $150,000 of equipment, having a 4-year useful life: Net Income Net Cash Flow $55,000 42,000 32,000 21,000 Year 1 Year 2 Year 3 Year 4 Year 1 2 3 4 5 6 7 8 9 10 0.943 Present Value of $1 at Compound Interest 6% 12% 10% 0.909 0.893 0.870 0.694 0.826 0.797 0.756 0.751 0.683 0.636 0.712 0.658 0.579 0.572 0.482 0.621 0.567 0.497 0.402 0.747 0.705 0.432 0.335 0.564 0.507 0.513 0.452 0.376 0.279 0.665 0.404 0.327 0.233 0.627 0.592 0.467 0.424 0.361 0.558 0.386 0.322 0.284 0.194 0.247 0.162 0.890 0.840 $32,000 20,000 10,000 (1,000) 0.792 15% 20% 0.833 a. Assuming that the desired rate of return is 6%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. Present value of net cash flow Amount to be invested Net present…
Based upon the information below, what is the company's Free Cash Flow Operating Income: 2,000,000 Statutory Tax Rate 25% Taxes (from income statement) $410,000 Amortization $35,000 Capex $275,000 Depreciation $185,000 Non Cash Expenses $240,000 Change in required cash -$15,000 Change in NWC $25,000
Purchase price $800,000 LTV 75% Term & Am 15 years Interest rate 4% Closing costs $12,000 Holding period 6 years Annual income taxes (below) Marginal tax rate 30% (aka ordinary inc tax) Taxes due on sale $200,000 Discount rate (before tax) 15% Selling expenses 3% Exit cap rate 5% Operations YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 NOI $ 33,000 $ 38,000 $ 41,000 $ 47,000 $ 51,000 $ 56,000 $61,000 САРЕХ $ (5,000) $_(6,000) $ (Z,000) $(8,000) $ (9,000) $(10,000) PBTCF $ 28,000 $ 32,000 $34,000 $ 39,000 $ 42,000 $ 46,000 Income taxes on annual $ (5,000) $ (6,000) $ (7,000) $ (8,000) $ (9,000) $ (10,000) operations What is the before tax IRR for this investment? 20.05% O None of these are correct O -17.23 % O 20.23 % 19.09 %
4
Condensed financial data of Cullumber Company follow. Cullumber Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 2022 $100,000 91,000 111,000 29,000 139,000 113,000 274,000 241,000 (46,000) (51,000) $698,000 $508,000 2021 $47,000 32,000 101,000 25,000 $111.000 $67,000 16,000 17,000 149,000 174,000 101,000 $508,000 110,000 219,000 242,000 $698,000
A5 accont
Years Revenue Cash Expense Book Depreciation Book Income Pre-Tax Book Tax at 32% After Tax Book Income Financial Measures Profit Margin % Net Assets ROA % Cashflow Revenue Cash Expense Tax Depreciation Pretax Income Tax at 32% After Tax Income After Tax Cashflow Cumulative Cashflow Payback Period Present Worth 10 PW12 PW15 IRR PV Index(15) Facility Cost Income Tax Rate 0 C. -9.5 d. -12.4 $ 100,000.00 2.2 Years 91740.92679 0.395702526 1 0.684350818 $ 100,000.00 32% $30,000.00 $100,000.00 $120,000.00 $140,000.00 $150,000.00 $150,000.00 $50,000.00 $60,000.00 $70,000.00 $75,000.00 $75,000.00 2 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $0.20 $20,400.00 $27,200.00 $0.26 $9,600.00 $12,800.00 $16,000.00 $17,600.00 $17,600.00 $20,400.00 ($100,000.00) $40,400.00 $51,040.00 ($100,000.00) -$59,600.00 -$8,560.00 $40,000.00 $50,000.00 $55,000.00 $55,000.00 $0.23 3 $0.45 $36,727.27 $80,000.00 $60,000.00 $40,000.00 $20,000.00 $0.85 $1.87 4 $19,040.00 5 $34,000.00 $37,400.00 $0.24…
Hasbro, Inc. Consolidated Statements of Operations - USD ($) $ in Thousands 12 Months Ended Dec. 31, 2018 Consolidated Statements of Operations [Abstract] Net revenues, external $ 4,579,646 Costs and expenses Cost of sales 1,850,678 Royalties 351,660 Product development 246,165 Advertising 439,922 Amortization of intangibles 28,703 Program production cost amortization 43,906 Selling, distribution and administration 1,287,560 Total expenses 4,248,594 Operating profit 331,052 Non-operating (income) expense Interest Expense 90,826 Interest income (22,357) Other (income) expense, net (7,819) Total non-operating expense, net 60,650 Earnings before income taxes 270,402 Income taxes 49,968 Net earnings 220,434 Net Loss Attributable to Noncontrolling Interests 0 Net Earnings Attributable to Hasbro, Inc. $ 220,434 Net earnings attributable to Hasbro, Inc. per common share: Basic (in dollars per share) $ 1.75 Diluted (in dollars per…

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Sales $10,000,000 Operating costs (excl. Depr. & Amort.) 5,500,000 EBITDA 4,500,000 Depreciation 1,200,000 $ 3,300,000 500,000 $ 2,800,000 1,120,000 $1,680,000 EBIT Interest EBT Taxes (40%) Net income an co