EP FUNDAMENTALS OF FIN.MGMT.-MINDTAP
14th Edition
ISBN: 9781305672086
Author: Brigham
Publisher: CENGAGE L
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Chapter 17, Problem 3P
AFN EQUATION Refer to problem 17-1 and assume that the company had $3 million in assets at the end of 2015. However, now assume that the company pays no dividends. Under these assumptions, what additional funds would be needed for the coming year? Why is this AFN different from the one you found in problem 17-1?
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Question 3: Study the following financial statements.
What was NOWC for 2017 and 2018? Show the calculation and circle your answer. Assume that all
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Chapter 17 Solutions
EP FUNDAMENTALS OF FIN.MGMT.-MINDTAP
Ch. 17 - Prob. 1QCh. 17 - Assume that an average firm in the office supply...Ch. 17 - Would you agree that computerized corporate...Ch. 17 - Certain liability and net worth items generally...Ch. 17 - Suppose a firm makes the following policy changes....Ch. 17 - AFN EQUATION Carter Corporations sales are...Ch. 17 - AFN EQUATION Refer to problem 17-1. What...Ch. 17 - AFN EQUATION Refer to problem 17-1 and assume that...Ch. 17 - PRO FORMA INCOME STATEMENT Austin Grocers recently...Ch. 17 - EXCESS CAPACITY Walter Industries has 5 billion in...
Ch. 17 - REGRESSION AND INVENTORIES Jasper Furnishings has...Ch. 17 - PRO FORMA INCOME STATEMENT At the end of last...Ch. 17 - LONG-TERM FINANCING NEEDED At year-end 2015, total...Ch. 17 - SALES INCREASE Pierce Furnishings generated 2...Ch. 17 - REGRESSION AND RECEIVABLES Edwards Industries has...Ch. 17 - REGRESSION AND INVENTORIES Charlie's Cycles Inc....Ch. 17 - EXCESS CAPACITY Edney Manufacturing Company has 2...Ch. 17 - Prob. 13P
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- AFN Equation Refer to Problem 9-1. Return to the assumption that the company had 5 million in assets at the end of 2018, but now assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year? Why is this AFN different from the one you found in Problem 9-1?arrow_forwardAFN EQUATION Refer to Problem 16-1. What additional funds would be needed if the companys year-end 2019 assets had been 4 million? Assume that all other numbers are the same. Why is this AFN different from the one you found in Problem 16-1? Is the companys capital intensity the same or different? Explain.arrow_forwardAFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of 2019. However, now assume that the company pays no dividends. Under these assumptions, what additional funds would be needed for the coming year? Why is this AFN different from the one you found in Problem 16-1?arrow_forward
- AFN Equation Refer to Problem 9-1. What would be the additional funds needed if the companys year-end 2018 assets had been 7 million? Assume that all other numbers, including sales, are the same as in Problem 9-1 and that the company is operating at full capacity. Why is this AFN different from the one you found in Problem 9-1? Is the companys capital intensity ratio the same or different?arrow_forward(Ignore income taxes in this problem.) Your Company is considering an investment that has the following data: Year 1 2 3. 4. Investment $20,000 Cash inflow $2,000 $2,000 $5,000 $4,000 $60,000 In what year does the payback period for this investment occur? O Year 2. O Year 3. Year 4. Year 5.arrow_forwardSuppose the risk of the company changes based on an unanticipated decrease in the Free Cash Flows by 10% annually during the years 2015, 2016, and 2017. What are the implications of the change in present value based on risk? In other words, what does the change mean to the company, and how would a financial manager interpret it?arrow_forward
- AFN EQUATION Refer to problem 16-1 and assume that the company had 3 million in assets at the end of 2016. However, now assume that the company pays no dividends. Under these assumptions, what additional funds would be needed for the coming year? Why is this AFN different from the one you found in problem 16-1?arrow_forwardWHAT IS SPACEX'S FY24 OPERATING CASH FLOWarrow_forwardQ) For a given company studies indicate that due to the nature of contract business, any excess funds generated are expected to earn at a rate of 11% per year. Use the ROIC method to determine the rate of return on invested capital value for the given cash flow series.(X0=$2,000, X1=$-900, X2=$-7,000, X3=$6,900) Explain it early but not in excel works. Typed or handwriting onlysarrow_forward
- Free Cash FlowsUsing Rhodes Corporation’s financial statements (shown after part f), answerthe following questions.a. What is the net operating profit after taxes (NOPAT) for 2018?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2018? e. What is the ROIC for 2018?f. How much of the FCF did Rhodes use for each of the following purposes:after-tax interest, net debt repayments, dividends, net stock repurchases,and net purchases of short-term investments? (Hint: Remember that a netuse can be negative.)arrow_forwardShow solutionarrow_forwardI need original answer. Do not copy from the internet. I need it rush Discussion and analysis of: 1. Liquidity Ratio 2. Current Ratio 3. Acid test ratio/ Quick Ratio 4. Cash Ratio What happen if cash ratio is less than 1 that answer to 0.66 on 2019, 0.73 on 2020 and 0.70 og 2021? What is the analysis of overall liquidity ratio including the current ratio and acid test ratio?arrow_forward
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