You must type in both the answer and all of your work to receive credit. Use the financial statements and additional data provided by management to calculate the firm's Free Cash Flo • Tax rate = 25% • Plans for the projected year will require $500 of new machinery and equipment • Firm expects next year's dividend to be $260 Acme Products, Inc. Balance Sheets ASSETS Cash Receivables Inventory current yr 400 600 900 projected yr 500 Acme Products, Inc. Sales (all credit) Cost of Goods Sold 1,125 Gross Profit 750 Income Statement projected yr 7,000 4,000 3,000
You must type in both the answer and all of your work to receive credit. Use the financial statements and additional data provided by management to calculate the firm's Free Cash Flo • Tax rate = 25% • Plans for the projected year will require $500 of new machinery and equipment • Firm expects next year's dividend to be $260 Acme Products, Inc. Balance Sheets ASSETS Cash Receivables Inventory current yr 400 600 900 projected yr 500 Acme Products, Inc. Sales (all credit) Cost of Goods Sold 1,125 Gross Profit 750 Income Statement projected yr 7,000 4,000 3,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You must type in both the answer and all of your work to receive credit.
Use the financial statements and additional data provided by management to calculate the firm's Free Cash Flow for the projected year.
• Tax rate = 25%
• Plans for the projected year will require $500 of new machinery and equipment
• Firm expects next year's dividend to be $260
Acme Products, Inc.
Balance Sheets
ASSETS
Cash
Receivables
Inventory
Property, plant &
equipment
Total assets
LIABILITIES & EQUITY
Accounts payables
Accrued expenses
Long-term debt
Common stock
Paid-in Capital
Retained earnings
Total liabilities and
equity
current yr
400
600
900
2,200
4,100
500
400
1,400
600
200
1,000
4,100
projected
yr
500
750
1,125
2,750
Acme Products, Inc.
Income Statement
Operating
expenses
5,125 Depreciation
5,125
Sales (all credit)
Cost of Goods
Sold
Gross Profit
Operating income
Interest expense
625 Taxable income
500
Taxes (25%)
1,750
Net income
750
250
1,250
projected
yr
7,000
4,000
3,000
1,400
400
1,200
100
1,100
275
825
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