You have just obtained financial information for the past 2 years for Treet Corporation. Treet Corporation Income Statements For Year Ending December 31 (Millions Of Dollars)   2012   2011 Sales 3,000.00   3,500.00 Operating costs (excluding depreciation and amortization) 2,500.00   3,100.00 EBITDA 500.00   400.00 Depreciation and amortization 90.00   75.00 Earnings before interest and taxes 410.00   325.00 Interest 70.00   60.00 Earnings before taxes 340.00   265.00 Taxes (40%) 136.00   126.00 Net income available to common stockholders 204.00   139.00 Common dividends 180.00   13.20   Treet Corporation Balance Sheets As at December 31 (Millions Of Dollars)   2012   2013 Assets:       Cash and marketable securities 120.00   30.00 Accounts receivable 540.00   400.00 Inventories 540.00   620.00 Total current assets 1,200.00   1,050.00 Net plant and equipment 900.00   750.00 Total assets 2,100.00   1,800.00 Liabilities and equity:       Accounts payable 350.00   250.00 Notes payable 250.00   150.00 Accruals 256.00   180.00 Total current liabilities 856.00   580.00 Long-term bonds 450.00   450.00 Total debt 1,306.00   1,030.00 Common stock (50 million shares) 150.00   150.00 Retained earnings 644.00   620.00 Total common equity 794.00   770.00 Total liabilities and equity 2,100.00   1,800.00   What is Treet’s net operating profit after taxes (NOPAT) for 2002? What is Treet’s net operating working capital for 2002? What is Treet’s amount of total investor-supplied operating capital for 2002? What is Treet’s free cash flow for 2002?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You have just obtained financial information for the past 2 years for Treet Corporation.

Treet Corporation

Income Statements

For Year Ending December 31

(Millions Of Dollars)

 

2012

 

2011

Sales

3,000.00

 

3,500.00

Operating costs (excluding depreciation and amortization)

2,500.00

 

3,100.00

EBITDA

500.00

 

400.00

Depreciation and amortization

90.00

 

75.00

Earnings before interest and taxes

410.00

 

325.00

Interest

70.00

 

60.00

Earnings before taxes

340.00

 

265.00

Taxes (40%)

136.00

 

126.00

Net income available to common stockholders

204.00

 

139.00

Common dividends

180.00

 

13.20

 

Treet Corporation

Balance Sheets

As at December 31

(Millions Of Dollars)

 

2012

 

2013

Assets:

 

 

 

Cash and marketable securities

120.00

 

30.00

Accounts receivable

540.00

 

400.00

Inventories

540.00

 

620.00

Total current assets

1,200.00

 

1,050.00

Net plant and equipment

900.00

 

750.00

Total assets

2,100.00

 

1,800.00

Liabilities and equity:

 

 

 

Accounts payable

350.00

 

250.00

Notes payable

250.00

 

150.00

Accruals

256.00

 

180.00

Total current liabilities

856.00

 

580.00

Long-term bonds

450.00

 

450.00

Total debt

1,306.00

 

1,030.00

Common stock (50 million shares)

150.00

 

150.00

Retained earnings

644.00

 

620.00

Total common equity

794.00

 

770.00

Total liabilities and equity

2,100.00

 

1,800.00

 

  1. What is Treet’s net operating profit after taxes (NOPAT) for 2002?
  2. What is Treet’s net operating working capital for 2002?
  3. What is Treet’s amount of total investor-supplied operating capital for 2002?
  4. What is Treet’s free cash flow for 2002?
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