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...

See similar textbooks

Similar questions

Home Depot reports net operating profit after tax (NOPAT) of $7,507 million in 2016. Its net operating assets at the beginning of 2016 are $24,685 million and are $25,415 million at the end of 2016. What are Home Depot's free cash flows to the firm (FCFF) for 2016?
Cash flow from assets. Use the data from the following financial statements in tthe popup window, The company paid interest expense of $18,000 for 2017 and had an overall tax rate of 40% for 2017. Find the cash flow from assets for 2017, and break it into its three parts operating cash flow, capital spending, and change in net working capital The operating cash flow is $ (Round to the nearest dollar) O Data Table - X Partial income Statement Year Ending 2017 Sales revenue $350,000 Cost of goods sold $140,000 Foxed costs $43,000 Sellng general, and administratve expenses $28.000 Depreciation $46,000
On BeDeM Inc.'s 2023 income statement, you observe that: Sales $212,000 Cost of Sales = $50,000 Depreciation and Amortization . Other Income $0 = $42,000 From BeDeM Inc.'s 2023 statement of cash flows, you observe that the firm distributed $39,000 as dividends to its stockholders, which was 75% of its net income in 2023. Given that the firm's operating expenses were $51,000 in 2023, and earnings are taxed at 21%. (a) Calculate the firm's EBITDA in 2023. (b) Find the firm's EBITDA/Interest Coverage ratio in 2023.
The Clifford Corporation's 2023 income statement shows the following: Sales Costs $ 300,000 $ 173,000 Other expenses $ 10,400 Depreciation expense $ 29,000 Interest expense $ 13,555 $ 76,000 $ 9,000 Taxes Dividends 2013 New equity Net new long-term debt Change in fixed assets $ 15,700 - $ 16,300 $ 27,000 a. Calculate the operating cash flow for the firm. b. Calculate the cash flow to creditors. c. Calculate the cash flow to stockholders. d. If the net fixed assets increased by $27,000 during the year, what was the change in Net Working Capital NWC?
Cash flow from assets. Use the data from the following financial statements in the popup window, The company paid interest expense of $19,000 for 2017 and had an overall tax rate of 40% for 2017. Find the cash flow from assets for 2017, and break it into its three parts: operating cash flow, capital spending, and change in net working capital. The operating cash flow is $ (Round to the nearest dollar.) Data table Sales revenue $349,800 Cost of goods sold $142,000 Fixed costs $42,900 Selling, general, and administrative expenses Depreciation $28,100 $45,900 (Click on the following icon in order to copy its contents into a spreadsheet.) Partial Balance Sheet 12/31/2016 ASSETS Cash Accounts receivable Inventories LIABILITIES $16,100 Notes payable $13,800 $27,800 Accounts payable $19,100 $47,900 Long-term debt $189,800 Fixed assets $368,100 OWNERS' EQUITY Accumulated depreciation $142,100 Retained earnings Intangible assets $82,000 Common stock $131,800 (Click on the following icon in…
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
XYZ Corporation has the following financial data for 2021: Interest Expense $20,000; Net New Borrowing $2,000; Dividends Paid $5,000; Net New Stock - $3,000. What is the firm's Cash Flow From Assets for 2021?
Cash flow from assets. Use the data from the following financial statements in the popup window,. The company paid interest expense of $17,600 for 2017 and had an overall tax rate of 40% for 2017. Find the cash flow from assets for 2017, and break it into its three parts: operating cash flow, capital spending, and change in net working capital. The operating cash flow is $ (Round to the nearest dollar.)
ABC Ltd. reported (under the GAAP) cash flow from operations of $5,250 million for the 2015 financial year. During the year, ABC made interest payments of $1,350 million and received $600 million in interest receipts from T-bills that it held. ABC has a tax rate of 35%. What was cash flow from operations in 2015 for ABC? Select one: a. $5,250 million b. $6,000 million c. $5,738 million d. $5,513 million
C Company has the following data for the year ending 12/31/2020 (dollars are in thousands): Net income = $600; EBIT = $1,184; Total assets = $3,000; Short-term investments = $200; Total capital employed = $2,193; and tax rate = 30%. The company’s WACC is 11.07%. What was its Economic Value Added (EVA) for the year 2020? Round your answer to the nearest dollar. Group of answer choices: $583 $586 $577 $572 $580
A company's sales in 2020 were $3.8 million and its total spontaneous assets were $8.7 million. Also in the same year, the firm's spontaneous liabilities consisted of $8.3 million in wages payable, $8.8 million in accounts payable, and $5.1 million in accrued expenses. The firm's profit margin is 9.7% and its dividend payout ratio is 9.1%. The balance sheet at year-end is similar in percentage of sales to that of prevlous years and this will continue in the future. Required: What is the percentage increase in sales that the company must achieve in order to avoid raising funds externally? Note: The term "k" is used to represent thousands (x $1,000). % (ROUND YOUR ANSWER TO 2 DECIMAL PLACES. FOR EXAMPLE: 17.23)
You are considering an investment in Fields and Struthers, Inc., and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $64 million, had a tax rate of 30 percent, and its depreciation expense was $5 million. Fields and Struthers' gross fixed assets increased by $30 million from 2014 and 2015. The firm's current assets increased by $26 million and spontaneous current liabilities increased by $15 million. a. Calculate Fields and Struthers' operating cash flow for 2015. b. Calculate Fields and Struthers' investment in operating capital for 2015. c. Calculate Fields and Struthers' free cash flow for 2015.

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Financial Accounting

Accounting

ISBN:

9781305088436

Author:

Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Fundamentals Of Financial Management, Concise Edi…

Finance

ISBN:

9781337902571

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS