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Subject :- Finance
Knickerdoodles, Inc. 2017 2018 Sales $740 $785 COGS 430 460 Interest 33 35 Dividends 16 17
$143
$297
$325
$353
$367
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- From the balance sheet prepare a proforma income statement where revenues can increase by 2% and the firm can borrow at 5.5% BALANCE SHEET 2021 Cash and cash equivalents 280 Receivables 2588 Inventory 2516 Other CA 189 TOTAL CA 5573 Fixed assets 5024 TOTAL ASSETS 10597 Accounts payable 4713 Short term debt 78 TOTAL CL 4790 LT debt 921 Shareh. Equity 4886 TOTAL LIAB. AND SHARH. EQUITY 10597 INCOME STATEMENT 2021 Sales 19418 COGS 13136 Depreciations 354 SG&A 4952 EBIT 976 Interest Expenses 52 Tax 268 Net income 656 Pro-forma statement Pro Forma Forecasts Actual Projected Projected Projected Projected Projected 2021 2022 2023 2024 2025 2026 COGS/REVENUES SGA/SALES INVENTORIES/COGS OTHER CA/SALES AR/SALES AP/COGS SALES/FIXED ASSETS DEPR/ FIXED ASSETS EQUITY/INVESTED CAPITAL ST DEBT/INVESTED…What is the cash flow from operating activities? 2020 2021 Sales $5,300 $5,900 Depreciation 750 850 COGS 2400 2900 Interest 180 196 Cash 200 500 Accts Receivables 200 400 Notes Payable 800 550 Long-term debt 1500 1950 Net fixed assets 3000 3500 Accounts Payable 250 400 Inventory 700 900 Dividend payout 30% 30% Tax rate 35% 30%Calculating Cash Flows. Consider the following abbreviated financial statements for Parrothead Enterprises. Balance sheets: 2020 Current assets $1327 2020 Net fixed assets $5470 2020 Current liabilities $530 2020 Long-term debt $ 2891 2021 Current assets $1438 2021 Net fixed assets $6587 2021 Current liabilities $595 2021 Long-term debt $3075 Income Statement: Sales $16831 Costs $7849 Depreciation $1499 Interest paid $427 Q: In 2021, Parrothead Enterprises purchased 2,740 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell? What is the cash flow from assets for the year? The tax rate is 21 percent.
- Q1. Complete the statement provided, for a tax rate of 20% and calculate the Operating cash flow 2019 Income Statement 201,200 108,660 20,790 27,300 Sales Cost of goods sold Selling & Administrative Depreciation EBIT Interest 5,520 EBT Таxes NI Dividends 9,343 21,801 Addition to retained profitsevious Ned 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 Cash Conversion Cycle using 365 days? 2017 Account Recevable-15.653 000 2018 Account Receivable=15:050 000 2017 Inventory= 5 585 000 2018 Inventory = 5704 000. 2017 Accounts Payable 14.565 000 2018 Accounts Payable 13 053 000 2017 Sales134674 000 2018 Sales 158 902 000 2017 Cost of Sales=9511430 2018 COs oSales = 1:3997 0 2017 Purchases 2018 Purchases 總 I99Adjust the Cash BalanceWe obtain the following 2018 forecasts of selected financial statement line items for Journey Company. $ millions 2017 Actual 2018 Est. Net Sales $747,442 $779,327 Marketable securities 67,096 62,096 Long-term debt 346,558 308,437 Treasury stock (deducted from equity) 51,174 51,174 Cash generated by operations 57,918 Cash used for investing (15,130) Cash used for financing (54,438) Total net change in cash (11,650) Cash at beginning of period 51,141 Cash at end of period $39,491 a. Does forecasted cash deviate from the normal level for this company?Calculate the company's normal cash level as a percentage of sales.Round answer to one decimal place.Answer% Using the rounded answer above, compute what should be the normal cash balance for FY2018.Round answer to the nearest million. million C. Complete the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance. Use…
- STATEMENT OF CASH FLOW EXAMPLE Kerby Company has prepared the following Balance Sheets for 2023 and 2022. Cash 12/31/23 $ 56 12/31/22 $ 40 Accounts receivable 41 42 Fixed assets 579 465 Accumulated depreciation (170) (140) $506 $407 Accounts payable Mortgage payable Preferred stock $ 74 $ 60 20 181 Additional Paid-In Capital - preferred 70 Common stock Retained earnings 100 61 ២៩៩៩88 100 100 $506 $407 1. On 8/1/23, Kerby sold a fixed asset with a cost of $91 and book value of $66 for $67. 2. Retained Earnings was adjusted by dividends and net income only. 3. Net Income in 2023 was $80. a. Net Cash Provided by Operations is $ b. Net Cash Used by Investments is $ c. Net Cash Provided by Financing is $Ag/ionmResponse pli=1 Consider the following statement of cash flows for Chicken Fil-A company. (in thousands) Cash flows from operating activities (CFO): 2020 2019 Net income $8,100 $6,800 Adjustments to reconcile net income to CFO Depreciation and amortization 3,100 900 (600) 1,600 Deferred income taxes 700 Other non-cash items (700) (Increase) decrease in operating assets and liabilities: Accounts receivable Inventories Other current assets Accounts payabie Income taxes payable (7,800) (2,100) (900) 1.300) (2,300) 1,700 2,000 4.100 (800) 700 13.800 400 Accrued liabilities 1,700 1500 Net CFO Cash flows from investing activities: Purchases of property and equipment Net cash used by investing activities Cash flows from financing activities: Proceeds from common stock sales Proceeds (repayments) of short-term debt Repayment of long-term debt Net cash provided by financing activities (800) (800) (1200) (1.200) 4700 4.600 (1,100) 13.300 200 4600 200 5.300 12.800 30 600 17.800 %2435.900…Free Cash FlowsUsing Rhodes Corporation’s financial statements (shown after part f), answerthe following questions.a. What is the net operating profit after taxes (NOPAT) for 2018?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2018? e. What is the ROIC for 2018?f. How much of the FCF did Rhodes use for each of the following purposes:after-tax interest, net debt repayments, dividends, net stock repurchases,and net purchases of short-term investments? (Hint: Remember that a netuse can be negative.)
- Cash Receivables Inventories Total CA Net fixed assets Total assets Sales Net income 280 21 14 70 280 364 126 490 % (use 2 decimals) Accounts payable Other current liabilities Total CL Long-term debt Common equity Total liab. and equity 42 28 70 140 280 420 A You have the above balance sheet and income statement for Ahmed's inc. You want to reduce your inventory to generate funds to buy back common stock at the book value. You will reduce inventory so that the current ratio is equal to 2.09. There is no effect on sales or net income. What is the new ROE?Financing Deficit Stevens Textile Corporation’s 2018 financial statements are shown here: Balance Sheet as of December 31, 2018 (Thousands of Dollars) Income Statement for December 31, 2018 (Thousands of Dollars) Suppose 2019 sales are projected to increase by 15% over 2018 sales. Use the forecasted financial statement method to forecast a balance sheet and income statement for December 31, 2019. The interest rate on all debt is 10%, and cash earns no interest income. Assume that all additional debt in the form of a line of credit is added at the end of the year, which means that you should base the forecasted interest expense on the balance of debt at the beginning of the year. Use the forecasted income statement to determine the addition to retained earnings. Assume that the company was operating at full capacity in 2018, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also, assume that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales. Determine the additional funds needed. What is the resulting total forecasted amount of the line of credit? In your answers to parts a and b, you should not have charged any interest on the additional debt added during 2019 because it was assumed that the new debt was added at the end of the year. But now suppose that the new debt is added throughout the year. Don’t do any calculations, but how would this change the answers to parts a and b?Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
