Willison Aircraft Corp shows the following information on its 2020 income statement. Sales Costs $196,000 $104,000 $6,800 Other Expenses Depreciation Expenses $9,100 Interest Expenses Taxes Dividends $14,800 $21,455 $10,400 In addition, you are told that that the firm has issued $5,700 in new equity during 2020 and redeemed $7,300 in outstanding long-term debt. What is the 2020 operating cash flow of the company?

Willison Aircraft Corp shows the following information on its 2020 income statement. Sales Costs $196,000 $104,000 $6,800 Other Expenses Depreciation Expenses $9,100 Interest Expenses Taxes Dividends $14,800 $21,455 $10,400 In addition, you are told that that the firm has issued $5,700 in new equity during 2020 and redeemed $7,300 in outstanding long-term debt. What is the 2020 operating cash flow of the company?

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 8P: LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and...

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LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. 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 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)
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Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATΕΜENT, 2019 $6,000 4,700 Sales Cost Net income $1,300 BALANCE SHEET, YEAR-END 2018 2019 2018 2019 $9,500 $14,300 $ 8,567 933 $1,000 13,300 Assets Debt Equity Total $9,500 $14,300 Total $9,500 $14,300 a. If sales increase by 10% in 2020 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 10%), what must be the balancing item? b. What will be the value of this balancing item? Balancing item а. b. Value
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 14% in 2022 and all assets and liabilities increase correspondingly. Income Statement Sales Costs, including interest Net income Net assets Total $ 4,800 3,900 $ 900 Balance Sheet, Year-End 2021 2020 $ 3,936 $3,500 $ 3,936 $3,500 Debt Equity Total 2021 $ 1,536 2,400 $ 3,936 2020 $1,433 2,067 $3,500 a. If the payout ratio is set at 50% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? b. If the payout ratio is set at 50% and the firm aintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
JP Inc. had the following information expressed in millions of $: 2019 2020 Net Fixed Assets 2,000 2,500 After Tax Operating Income 700 925 Net Income 600 825 b. The growth rate of GDP is estimated to be on average 2.5 % in the next few years. JP inc has a capital structure of 40% Debt and 60% Common Stock (Equity). Cost of debt prior to taxes is estimated to be 5% and cost of equity is estimated to 13%. Tax rate is estimated to be 35%. Based on this information and your solution in 18.a estimate the intrinsic value for this firm.
A company has the following selected data ($ in millions): 2021 2020 Balance sheet data Total assets $ 3,500 $ 2,150 Total liabilities 1,650 1,000 Total stockholders' equity 1,850 1,150 Income statement data Sales $ 890 Interest expense 70 Tax expense 36 Net income 100 Based on these amounts, calculate the following ratios for the company in 2021: (Round your answers to 2 decimal places.) 1- debt to equity ratio: ______ 2-return on assets ratio: _____% 3- times interest earned ratio: _____times
Target entered fiscal 2019 with a total capitalization of 21898 million. In 2019, debt investors received interest income of $875 million. Net income to shareholders was 8,648 million (assume a taxe rate of 21%) calculate the economic value added assuming its cost of capital is 10%
The 2020 balance sheet of Osaka’s Tennis Shop, Incorporated, showed long-term debt of $2.25 million, and the 2021 balance sheet showed long-term debt of $2.66 million. The 2021 income statement showed an interest expense of $305,000. During 2021, Osaka’s Tennis Shop, Incorporated, realized the following: Cash flow to creditors –$ 105,000 Cash flow to stockholders $ 209,000 Suppose you also know that the firm’s net capital spending for 2021 was $1.5 million and that the firm reduced its net working capital investment by $55,000. What was the firm’s 2021 operating cash flow, or OCF?
Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2022 Sales $ 5,000 Cost 3,900 Net income $ 1,100 BALANCE SHEET, YEAR-END 2021 2022 2021 2022 Assets $ 7,500 $ 12,100 Debt $ 833 $ 1,000 Equity 6,667 11,100 Total $ 7,500 $ 12,100 Total $ 7,500 $ 12,100 If sales increase by 10% in 2023 and the company uses a strict percentage of sales planning model (meaning that all items on the income and balance sheet also increase by 10%), what must be the balancing item? What will be the value of this balancing item?
The 2020 balance sheet of Osaka's Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2021 balance sheet showed long-term debt of $2.66 million. The 2021 income statement showed an interest expense of $305,000. The balance sheet also showed $780,000 in the common stock account and $4.78 million in the additional paid-in surplus account. The 2021 balance sheet showed $965,000 and $5.04 million in the same two accounts, respectively. The company paid out $654,000 in cash dividends during 2021. You also know that the firm's net capital spending for 2021 was $1.5 million and that the firm reduced its net working capital investment by $55,000. What was the firm's 2021 operating cash flow, or OCF? Input area: Dec. 31, 2020 Long-term debt Dec. 31, 2021 Long-term debt Interest expense Dec. 31, 2020 Common stock Dec. 31, 2020 Additional paid-in surplus Dec. 31, 2021 Common stock Dec. 31, 2021 Additional paid-in surplus Cash dividends 2021 Net capital spending Change in net…
UTT Co. shows the following information on its 2019 financial statement: interest expense $7,950. In addition, you're told that the firm issued $4,100 in new equity during 2019 and redeemed $6,900 in outstanding long-term debt. $6,900; dividends What is the 2019 cash flow to creditors? = =