The 2013 income statement ofSouthern Products, Inc., showed$2.3 million EBIT, $340,000depreciation, $800,000 interestexpenses, and its tax rate is 34%.If the firm's net capital spendingfor 2013 was $620,000, and thefirm increased its net workingcapital investment by $70,000,find the firm's 2013 cash flow fromassets (CFFA). Do not include the$ sign or comma, and round it toa whole dollar, e.g., 2345 (for$2,345).

First, let's calculate the Operating Cash Flow (OCF): OCF = EBIT(1 - Tax Rate) + Depreciation OCF =…

Answered: The 2013 income statement of Southern…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 9P: Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current...

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Home Depot entered fiscal 2017 with a total capitalization of $21,883 million. In 2017, debt investors received interest income of $870 million. Net income to shareholders was $8,633 million. (Assume a tax rate of 21%.) Calculate the economic value added assuming its cost of capital is 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
In 2016, the Allen Corporation had sales of $61 million, total assets of $43 million, and total liabilities of $15 million. The interest rate on the company's debt is 5.8 percent, and its tax rate is 35 percent. The operating profit margin is 14 percent. a. Compute the firm's 2016 net operating income and net income. b. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)
For 2018, gourmet kitchen products reported $22 million of sales & $19 million of operating costs (including depreciation). The compnay had $15 million of total invested capital. Its after tax cost of capital is 8% h its federal-plus- state income tax rate was 34%. What was the firm's economic value added (EVA) thay is how much value did management add to stockholders wealth during 2018?
In 2016, the Allen Corporation had sales of $60 million, total assets of $47 million, and total liabilities of $22 million. The interest rate on the company's debt is 5.6%, and its tax rate is 35%. The operating profit margin is 12%. Compute the firm's 2016 net operating income and net income. Calculate the firm's operating return on assets and return on equity. (Hint: You can assume that interest must be paid on all of the firm's liabilities.)
You are considering an investment in National Corporation and want to evaluate the firm's free cash flow. From the income statement, you see that National Corporation's earned an EBIT of P62,000,000, paid taxes of P17,000,000, and its depreciation expense was P5,000,000. Fixed assets increased by P32,000,000 from 2015 to 2016. The firm's current assets increased by P20,000,000 and spontaneous current liabilities increased by P12,000,000. The National Corporation's operating cash flow for 2016 is * Format: 11,111,111
For 2018, Gourmet Kitchen Products reported $22 million of sales and $19 millionof operating costs (including depreciation). The company has $15 million of total investedcapital. Its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was36%. What was the firm’s economic value added (EVA), that is, how much value did managementadd to stockholders’ wealth during 2018?
For 2018, Gourmet Kitchen Products reported $22.5 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2018? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.
Tibbs Inc. had the following data for the most recent year: Net income = $300; Net operating profit after taxes (NOPAT) = $380; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,300. What was its return on invested capital (ROIC)? Select the correct answer. a. 16.92% b. 16.52% c. 17.12% d. 16.72% e. 16.32%
Tibbs Inc. had the following data for the year ending 12/31/12: Net income = $400; Net operating profit after taxes (NOPAT) = $450; Total assets = $2,600; Short-term investments = $200; Stockholders' equity = $1,600; Total debt = $1,000; and Total operating capital = $2,200. What was its return on invested capital (ROIC)? Group of answer choices 14.32% 22.50% 16.36% 20.45% 18.41%
You are a financial Manager of Chevron Corp. You need to assess the effectiveness of working capital management of the company for 2018 using the following data. What is the 2018 Receivable turnover? 2017 Account Receivable = 15,353 000 2018 Account Receivable = 15.050,00O 2017 Inventory = 5,585.000 2018 Inventory = 5 704.00O 2017 Accounts Payable= 14 565 00I 2018 Accounts Payable = 13 953 000 2017 Sales 134,674 000 2018 Sales 158.902 000. 2017 Cost of Sales = 95 114.000 2018 Cost of Sales = 113 997 000 2017 Purchases= 95 114 000 2018 PurchaSes = 123 435 000
Yearend working capital in 2018 was $150 million and the firm’s marginal tax rate is 40% in 2019. What is the Free Cash Flow to the Firm in 2019 in $ million?
a. Sales for 2018 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciationand amortization were 11% of net fixed assets, interest was $8,575,000, thecorporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Giventhis information, construct the firm’s 2018 income statement.b. Construct the statement of stockholders’ equity for the year ending December 31, 2018,and the 2018 statement of cash flows.c. Calculate 2017 and 2018 net operating working capital (NOWC) and 2018 free cashflow (FCF). Assume the firm has no excess cash.d. If Laiho increased its dividend payout ratio, what effect would this have on corporatetaxes paid? What effect would this have on taxes paid by the company’s shareholders?e. Assume that the firm’s after-tax cost of capital is 10.5%. What is the firm’s 2018 EVA?f. Assume that the firm’s stock price is $22 per share and that at year-end 2018 the firmhas 10 million shares outstanding. What is the firm’s MVA at year-end 2018?

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