**Tubby Toys Cash Flow Analysis**Tubby Toys estimates that its new line of rubber ducks will generate the following financial figures:- Sales: $7 million- Operating costs: $4 million- Depreciation expense: $1 millionWith a tax rate of 25%, you are tasked with calculating the firm's operating cash flow.**Calculation Instructions:**- Do not round intermediate calculations.- Provide the answer in millions, rounded to one decimal place.In the grey input box labeled "Firm's operating cash flow," enter your calculated value.

Operating cash flows (OCF) is the cash flows generated from normal operations- Selling and producing…

Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 25%, what is the firm's operating cash flow? Note: Do not round your Intermediate calculations. Enter your answer in millions rounded to 1 decimal place. Firm's operating cash flow million

Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 25%, what is the firm's operating cash flow? Note: Do not round your Intermediate calculations. Enter your answer in millions rounded to 1 decimal place. Firm's operating cash flow million

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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You must type in both the answer and all of your work to receive credit. Use the financial statements and additional data provided by management to calculate the firm's Free Cash Flow for the projected year. • Tax rate = 25% • Plans for the projected year will require $500 of new machinery and equipment • Firm expects next year's dividend to be $260 Acme Products, Inc. Balance Sheets ASSETS Cash Receivables Inventory Property, plant & equipment Total assets LIABILITIES & EQUITY Accounts payables Accrued expenses Long-term debt Common stock Paid-in Capital Retained earnings Total liabilities and equity current yr 400 600 900 2,200 4,100 500 400 1,400 600 200 1,000 4,100 projected yr 500 750 1,125 2,750 Acme Products, Inc. Income Statement Operating expenses 5,125 Depreciation 5,125 Sales (all credit) Cost of Goods Sold Gross Profit Operating income Interest expense 625 Taxable income 500 Taxes (25%) 1,750 Net income 750 250 1,250 projected yr 7,000 4,000 3,000 1,400 400 1,200 100 1,100…
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $ 500,000. It is estimated that Database can generate $ 1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets ( investment) be for the year? (Round your return on assets to 1 decimal place. Omit the "$" and "%" signs in your response.)
1. Ashwell Corp has $1,700,000 of sales, $250,000 of inventories, $175,000 of receivables, and $125,000 of payables. Its cost of goods sold is 70% of sales. What is Ashwell’s cash conversion cycle? 2. If current assets are $133,000 and current liabilities are $107,500, what is working capital?
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A company is considering a $184,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Required A Required B Year 1 $11,000 Year Year 2 $31,000 Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Net Cash Flows Year 3 $61,000 Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Present Value Factor Year 4 $46,000 Present Value of Net Cash Flows Year 5 $123,000
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $18 million, and production and sales will require an initial $3 million investment in net operating working capital. The company's tax rate is 25 %. Enter your answers as a positive values. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places. Please show all work and solutions. Show all work.
Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average inventories of $21,000; average accounts receivable of $37,000, and an average accounts payable balance of $32, 000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.) a. 37.26. b. 60.86. c. 1.82. d. 13.66.
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A firm has $600,00 in current assets and $150,000 in current liabilities. If it uses cash to pay $50,000 in accounts recievalbes will the current ratio increase or decraese? Will the net working capital increase or decrease or stay the same? Why?

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