You have just obtained financial information for the past 2 years for Sebring Corporation. SEBRING CORPORATION INCOME STATEMENTS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2002 2001 Sales 3,600.00 3,000.00 Operating costs (excluding dep. and amort.) (3,060.00) (2,550.00) EBITDA 540.00 450.00 Depreciation and amortization (90.00) (75.00) Earnings before interest and taxes 450.00 375.00 Interest (65.00) (60.00) Earnings before taxes 385.00 315.00 Taxes (40%) (154.00) (126.00) Net income available to common stockholders 231.00 189.00 Common dividends 181.50 13.20 SEBRING CORPORATION BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2002 2001 Assets Cash and marketable securities 36.00 30.00 Accounts receivable 540.00 450.00 Inventories 540.00 600.00 Total current assets 1,116.00 1,080.00 Net plant and equipment 900.00 750.00 Total assets 2,016.00 1,830.00 Liabilities and equity Accounts payable 324.00 270.00 Notes payable 201.00 155.00 Accruals 216.00 180.00 Total current liabilities 741.00 605.00 Long-term bonds 450.00 450.00 Total debt 1,191.00 1,055.00 Common stock (50 million shares) 150.00 150.00 Retained earnings 675.00 625.00 Total common equity 825.00 775.00 Total liabilities and equity 2,016.00 1,830.00 a. What is Sebring’s net operating profit after taxes (NOPAT) for 2002? b. What is Sebring’s net operating working capital for 2002? c. What is Sebring’s amount of total investor-supplied operating capital for 2002? d. What is Sebring’s free cash flow for 2002?
You have just obtained financial information for the past 2 years for Sebring Corporation.
SEBRING CORPORATION
INCOME STATEMENTS
FOR YEAR ENDING DECEMBER 31
(MILLIONS OF DOLLARS)
2002 2001
Sales 3,600.00 3,000.00
Operating costs (excluding dep. and amort.) (3,060.00) (2,550.00)
EBITDA 540.00 450.00
Depreciation and amortization (90.00) (75.00)
Earnings before interest and taxes 450.00 375.00
Interest (65.00) (60.00)
Earnings before taxes 385.00 315.00
Taxes (40%) (154.00) (126.00)
Net income available to common stockholders 231.00 189.00
Common dividends 181.50 13.20
SEBRING CORPORATION
BALANCE SHEETS
FOR YEAR ENDING DECEMBER 31
(MILLIONS OF DOLLARS)
2002 2001
Assets
Cash and marketable securities 36.00 30.00
Accounts receivable 540.00 450.00
Inventories 540.00 600.00
Total current assets 1,116.00 1,080.00
Net plant and equipment 900.00 750.00
Total assets 2,016.00 1,830.00
Liabilities and equity
Accounts payable 324.00 270.00
Notes payable 201.00 155.00
Accruals 216.00 180.00
Total current liabilities 741.00 605.00
Long-term bonds 450.00 450.00
Total debt 1,191.00 1,055.00
Common stock (50 million shares) 150.00 150.00
Total common equity 825.00 775.00
Total liabilities and equity 2,016.00 1,830.00
a. What is Sebring’s
b. What is Sebring’s net operating working capital for 2002?
c. What is Sebring’s amount of total investor-supplied operating capital for 2002?
d. What is Sebring’s
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