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Using the weighted average net income from below, calculate the net cash flows to invested capital. Assume depreciation is $400000, capital expenditures are $300,000, additions to net working capital are $100,000 plus $60,000 interest expense net of the deduction resulting from interest as a tax deduction. 2022 2021 2020 2019 2018 Weight 5 4 3 2 1 15 Weighted average (Rounded) $ 1,361,661 $ 836,342 $ 521,057 $ 707,770 $ 721,829 4,148,659 Sample Company Weighted Average Net Cash Flows to Invested Capital December 31, 2022 Weighted average adjusted net income Non-cash charges (e.g. depreciation, amortization, deferred revenue, deferred taxes) Capital expenditures necessary to support projected operations (Additions) deletions to net working capital necessary to support projected operations Interest expense (net of tax deduction resulting from interest as a tax deductible expense) Weighted net cash flows to invested capital A $ Weighted

Using the weighted average net income from below, calculate the net cash flows to invested capital. Assume depreciation is $400000, capital expenditures are $300,000, additions to net working capital are $100,000 plus $60,000 interest expense net of the deduction resulting from interest as a tax deduction. 2022 2021 2020 2019 2018 Weight 5 4 3 2 1 15 Weighted average (Rounded) $ 1,361,661 $ 836,342 $ 521,057 $ 707,770 $ 721,829 4,148,659 Sample Company Weighted Average Net Cash Flows to Invested Capital December 31, 2022 Weighted average adjusted net income Non-cash charges (e.g. depreciation, amortization, deferred revenue, deferred taxes) Capital expenditures necessary to support projected operations (Additions) deletions to net working capital necessary to support projected operations Interest expense (net of tax deduction resulting from interest as a tax deductible expense) Weighted net cash flows to invested capital A $ Weighted

Essentials Of Investments
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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3 Using the weighted average net income from below, calculate the net cash flows to invested capital. 4 Assume depreciation is $400000, capital expenditures are $300,000, additions to net working capital are 5 $100,000 plus $60,000 interest expense net of the deduction resulting from interest as a tax deduction. 6 7 8 Weight 5 4 3 2 1 15 $ 1,361,661 $836,342 2022 9 2021 10 2020 11 2019 12 2018 13 14 15 Weighted average (Rounded) 16 17 18 19 20 22 Weighted average adjusted net income 24 Non-cash charges (e.g. depreciation, amortization, deferred revenue, deferred taxes) 26 Capital expenditures necessary to support projected operations 28 (Additions) deletions to net working capital necessary to support projected operations 30 Interest expense (net of tax deduction resulting from interest as a tax deductible expense) 32 Weighted net cash flows to invested capital 33 $ 521,057 $ 707,770 $ 721,829 4,148,659 Sample Company Weighted Average Net Cash Flows to Invested Capital December 31, 2022 $ GA $ Weighted
Transcribed Image Text:3 Using the weighted average net income from below, calculate the net cash flows to invested capital. 4 Assume depreciation is $400000, capital expenditures are $300,000, additions to net working capital are 5 $100,000 plus $60,000 interest expense net of the deduction resulting from interest as a tax deduction. 6 7 8 Weight 5 4 3 2 1 15 $ 1,361,661 $836,342 2022 9 2021 10 2020 11 2019 12 2018 13 14 15 Weighted average (Rounded) 16 17 18 19 20 22 Weighted average adjusted net income 24 Non-cash charges (e.g. depreciation, amortization, deferred revenue, deferred taxes) 26 Capital expenditures necessary to support projected operations 28 (Additions) deletions to net working capital necessary to support projected operations 30 Interest expense (net of tax deduction resulting from interest as a tax deductible expense) 32 Weighted net cash flows to invested capital 33 $ 521,057 $ 707,770 $ 721,829 4,148,659 Sample Company Weighted Average Net Cash Flows to Invested Capital December 31, 2022 $ GA $ Weighted
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