Southeast Systems has the following balance sheet and the income statement. Make sure the unit is in million dollars. (unit: $ in millions) Southeast Systems Balance Sheets 2013 2014 2013 2014 Cash $50 $100 Accounts payable $450 $500 Accounts receivable 600 700 Notes payable 300 400 Inventory 500 550 Long-term debt 650 650 Net fixed assets 1,000 1,000 Common equity 300 300 Retained earnings 450 500 Total Assets $2,150 $2,350 Total Liabilities & Owner’s Equity $2,150 $2,350 Income Statement 2014 Net sales $2,370 Cost of goods sold 2,070 Depreciation 200 EBIT 100 Interest expenses ( ) Taxable income 80 Taxes 28 Net income $52 Dividends $2 (1) Compute the net capital spending (NCS) or the capital expenditure for 2014. (2) Compute the free cash flow (FCF) or the cash flow from the assets for 2014. (1) $0 million (2) $122 million (1) $200 million (2) $222 million (1) $1,200 million (2) $122 million (1) $0 million (2) $22 million (1) $200 million (2) $22 million
Southeast Systems has the following
(unit: $ in millions)
|
Southeast Systems Balance Sheets |
|||||
|
|
2013 |
2014 |
|
2013 |
2014 |
|
Cash |
$50 |
$100 |
Accounts payable |
$450 |
$500 |
|
Accounts receivable |
600 |
700 |
Notes payable |
300 |
400 |
|
Inventory |
500 |
550 |
Long-term debt |
650 |
650 |
|
Net fixed assets |
1,000 |
1,000 |
Common equity |
300 |
300 |
|
|
|
|
|
450 |
500 |
|
Total Assets |
$2,150 |
$2,350 |
Total Liabilities & Owner’s Equity |
$2,150 |
$2,350 |
|
Income Statement |
|
|
|
2014 |
|
Net sales |
$2,370 |
|
Cost of goods sold |
2,070 |
|
|
200 |
|
EBIT |
100 |
|
Interest expenses |
( ) |
|
Taxable income |
80 |
|
Taxes |
28 |
|
Net income |
$52 |
|
Dividends |
$2 |
(1) Compute the net capital spending (NCS) or the capital expenditure for 2014.
(2) Compute the
|
(1) $0 million (2) $122 million |
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(1) $200 million (2) $222 million |
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|
(1) $1,200 million (2) $122 million |
||
|
(1) $0 million (2) $22 million |
||
|
(1) $200 million (2) $22 million |
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