You are analyzing Horizon Industries for potential investment. From the financial statements, you see that Horizon earned an EBIT of $52.4 million, paid taxes of $13.1 million, and reported depreciation expense of $8.7 million. Horizon's gross fixed assets increased by $22.5 million year-over-year. The firm's current assets increased by $9.3 million and spontaneous current liabilities increased by $5.6 million. What are Horizon Industries' operating cash flow, investment in operating capital, and free cash flow for the year, respectively (in millions)? a. $48.0 million, $26.2 million, $21.8 million b. $52.4 million, $22.5 million, $29.9 million c. $48.0 million, $22.5 million, $25.5 million d. $48.0 million, $26.2 million, $26.2 million

You are analyzing Horizon Industries for potential investment. From the financial statements, you see that Horizon earned an EBIT of $52.4 million, paid taxes of $13.1 million, and reported depreciation expense of $8.7 million. Horizon's gross fixed assets increased by $22.5 million year-over-year. The firm's current assets increased by $9.3 million and spontaneous current liabilities increased by $5.6 million. What are Horizon Industries' operating cash flow, investment in operating capital, and free cash flow for the year, respectively (in millions)? a. $48.0 million, $26.2 million, $21.8 million b. $52.4 million, $22.5 million, $29.9 million c. $48.0 million, $22.5 million, $25.5 million d. $48.0 million, $26.2 million, $26.2 million

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

See similar textbooks

Similar questions

Elba Industries recently reported an EBITDA of $12.5 million and a net income of $3.7 million. It had $3.2 million in interest expense, and its corporate taxrate was 40%. What was its charge for depreciation and amortization?
My Pleasure (MP) had total invested assets of $400,000 for the year. Using those assets, they generated $950,000 of sales, and $275,000 of operating income. What was MP’s investment turnover for the period? My Pleasure (MP) had total invested assets of $400,000 for the year. Using those assets, they generated $950,000 of sales, and $275,000 of operating income. What was MP’s investment turnover for the period? $68.75 3.45% 28.95% $2.38
Elba Industries recently reported an EBITDA of $12.5 million and a net income of $3.7 million. It had $3.2 million in interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
Provide return on asset ?
Peyton's Palace has net income of $13.4 million on sales revenue of $114 million. Total assets were $80 million at the beginning of the year and $88 million at the end of the year. Calculate Peyton's return on assets, profit margin, and asset turnover ratios. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5).) Return on Assets Numerator/Denominator Amounts Peyton's Palace % Profit Margin Numerator/Denominator Amounts Peyton's Palace % Asset Turnover Numerator/Denominator Amounts Peyton's Palace times
You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2,850,000 this year. Depreciation, the increase in net working capital, and capital spending were $225,000, $90,000, and $415,000, respectively. You expect that over the next five years, EBIT will grow at 16 percent per year, depreciation and capital spending will grow at 21 percent per year, and NWC will grow at 11 percent per year. The company has $15,100,000 in debt and 345,000 shares outstanding. You believe that sales in five years will be $22,600,000 and the price-sales ratio will be 2.4. The company’s WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of the company's stock?
During the current year, Kite Corporation had average total assets are $500,000, total asset turnover of 1.10, and a net profit margin percentage of 12.0%. Kite's interest expense equals 5.0% of its total liabilities and its income tax rate is 21.0%. For purposes of computing its operating income (or EBIT), Kite's contribution margin ratio is 25%. If Kite's return on equity is 26.4%, what is Kite's equity multiplier? Round to two decimal points. O 0.50 O 0.67 O 1.50 2.00 None of the above
Peyton’s Palace has net income of $15 million on sales revenue of $130 million. Total assets were $96 million at the beginning of the year and $104 million at the end of the year. Calculate Peyton’s return on assets, profit margin, and asset turnover ratios.
Patterson Brothers recently reported an EBITDA of $7.5 million andnet income of $2.1 million. It had $2.0 million of interest expense, and its corporate tax ratewas 30%. What was its charge for depreciation and amortization?
Last year, Hassan’s Madhatter, Inc. had an ROA of 9 percent, a profit margin of 14.70 percent, and sales of $30 million. Calculate Hassan’s Madhatter’s total assets. (Enter your answer in millions.) Total Assets = ____________ millions
Last year, Hassan's Madhatter, Incorporated had an ROA of 6.6 percent, a profit margin of 11.55 percent, and sales of $20 million. Calculate Hassan's Madhatter's total assets. Note: Enter your answer in millions. Total assets million
Lauryn’s Doll Co. had EBIT last year of $47 million, which is net of a depreciation expense of $4.7 million. In addition, Lauryn’s made $7.25 million in capital expenditures and increased net working capital by $2.8 million. Assume that Lauryn’s has a reported equity beta of 1.5, a debt-to-equity ratio of .5, and a tax rate of 21 percent. What is Lauryn’s FCF for the year?(Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)