Need to give account question answer The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $3.3 million, and the 2015 balance sheet showed long-termdebt of $3.4 million. The 2015 income statement showed an interestexpense of $155,000. During 2015, the company had a cash flow tocreditors of $55,000 and the cash flow to stockholders for the year was$60,000. Suppose you also know that the firm s net capital spending for2015 was $1,350,000 and that the firm reduced its net working capitalinvestment by $65,000.What was the firm's 2015 operating cash flow, or OCF?

Step 1: Introduction to the Operating cash flow The operating cash flow of a company reveals how…

Answered: The 2014 balance sheet of Sugarpova's…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 12P

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At year-end 2016, total assets for Arrington Inc. were $1.4 million and accounts payable were $410,000. Sales, which in 2016 were $2.8 million, are expected to increase by 20% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $440,000 in 2016, and retained earnings were $305,000. Arrington plans to sell new common stock in the amount of $60,000. The firm's profit margin on sales is 3%; 50% of earnings will be retained. a. What were Arrington's total liabilities in 2016? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent. b. How much new long-term debt financing will be needed in 2017? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round your…
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The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet: Cash Accounts payable Accounts receivable Notes payable Inventories Accruals Net fixed assets Long-term debt Common stock Retained earnings Total liabilities and equity $50 150 50 400 100 250 Total assets $1000 $1000 Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 5% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar. $ $ 100 200 200 500 360
The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet: Cash $ 100 Accounts payable $ 50 Accounts receivable 200 Notes payable 150 Inventories 200 Accruals 50 Net fixed assets 500 Long-term debt 400 Common stock 100 Retained earnings 250 Total assets $1000 Total liabilities and equity $1000 Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. All assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 6% and its payout ratio to be 30%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.
How much long-term debt did the firm have?
The 2022 balance sheet of Fast Auto Manufacturers, showed $1.4 million in long-term debt, $470,000 in the common stock account, and $4.15 million in the additional paid-in surplus account. The 2023 balance sheet showed $3.15 million, $755,000, and $6.2 million in the same three accounts, respectively. The 2023 income statement showed an interest expense of $280,000. The company paid out $500,000 in cash dividends during 2023. If the firm's net capital spending for 2023 was $330,000, and the firm reduced its net working capital investment by $265,000, what was the firm's 2023 operating cash flow, or OCF? O $-3,240,000 O $-4,130,000 O $4,530,000 $-3,400,000 O $5,155,000
Higgins Company has been operating for one year (2014). You are a member of the management team investigating expansion ideas that will require borrowing funds from banks. At the start of 2015, Higgins’s T-account balances were as follows: Assets: Cash Short-Term Investments Property and Equipment 4,400 2,600 3,200 Liabilities: Short-Term Notes Payable Long-Term Notes Payable 1,500 390 Stockholders’ Equity: Common Stock Additional Paid-in Capital Retained Earnings 660 2,640 5,010 The following transactions occured in 2015: (a) Borrowed $3,100 from a local bank, signing a note due in three years. (b) Sold $1,400 of the investments for $1,400 cash. (c) Sold one-half of the property and equipment for $1,600 in cash. (d) Declared and paid $360 in cash…
You are preparing pro forma financial statements for 2017 using the percent-of-sales method. Sales were $100,000 in 2016 and are projected to be $120,000 in 2017. Net income was $5,000 in 2016 and is projected to be $6,000 in 2017. Equity was $45,000 at year-end 2015 and $50,000 at year-end 2016. Assuming that this company never issues new equity, never repurchases equity, and never changes its dividend payout ratio, what would be projected for equity at year-end 2017?
In 2018, Jake's Jamming Music, Inc. announced an ROA of 8.46 percent, ROE of 13.50 percent, and profit margin of 8.5 percent. The firm had total assets of $8.5 million at year-end 2018. Calculate the 2018 value of net income available to common stockholders for Jake’s Jamming Music, Inc. (Enter your answer in dollars. Round your answer to the nearest whole dollar.) Calculate the 2018 value of common stockholders’ equity for Jake’s Jamming Music, Inc. (Enter your answer in dollars not in millions and round to the nearest whole dollar.)
Paladin Furnishings generated $4 million in sales during 2018, andits year-end total assets were $3.2 million. Also, at year-end 2018, current liabilities were$500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and$100,000 of accrued liabilities. Looking ahead to 2019, the company estimates that its assetsmust increase by $0.80 for every $1.00 increase in sales. Paladin’s profit margin is 3%, andits retention ratio is 50%. How large of a sales increase can the company achieve withouthaving to raise funds externally?
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 Inventory turnover? 2017 Account Receivable = 15,353,000 2018 Account Receivable = 15,050,000 2017 Inventory = 5,585,000 2018 Inventory = 5,704,000 2017 Accounts Payable = 14,565,000 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
Home depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017 debt investors received interest income of $889 million. Net income to shareholders was $8690 million (assume a tax rate of 21%) calculate the economic value added assuming its cost of capital is 10%

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