Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN: 9781305635937
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 3, Problem 17P

a.

Summary Introduction

To compute: The net operating working capital for 2015 and 2016.

Balance sheet:

Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at last of the accounting period and informs about company’s financial position on that day.

Income Statement:

A part of the financial statements that lists the income and expenses of business for an accounting year is called income statement. It is prepared at the end of accounting period to know the profitability of the` business.

b.

Summary Introduction

To compute: The free cash flow in 2016 for Company P.

Free Cash Flow:

The cash generated over and above required by business operations and capital expenditure is called free cash flow. Statement of cash flow reports the cash flow generated or consumed by the business.

c.

Summary Introduction

To explain: The large increase in dividends in 2016.

Balance sheet:

Balance sheet is a part of the financial statements that lists the company’s assets, liabilities and shareholders’ fund. It is prepared at last of the accounting period and informs about company’s financial position on that day.

Income Statement:

A part of the financial statements that lists the income and expenses of business for an accounting year is called income statement. It is prepared at the end of accounting period to know the profitability of the` business.

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Cash flow from assets. Use the data from the following financial statements in tthe popup window, The company paid interest expense of $18,000 for 2017 and had an overall tax rate of 40% for 2017. Find the cash flow from assets for 2017, and break it into its three parts operating cash flow, capital spending, and change in net working capital The operating cash flow is $ (Round to the nearest dollar) O Data Table - X Partial income Statement Year Ending 2017 Sales revenue $350,000 Cost of goods sold $140,000 Foxed costs $43,000 Sellng general, and administratve expenses $28.000 Depreciation $46,000
Remaining Question Completion Status: Calculate operating cash flow for 2016 using the following information? Amount ($) Description Year 2016 500,000 Sales 300,000 Cost of goods sold 65,000 Depreciation Interest expense 15,000 Selling and administrative expenses 55,000 Equity (at the beginning of 2016) 197,250 Tax rate 30% Dividends payout 50% $65,000 $145,500 $125,500 $80,000 QUESTION 6 From the following table calculate net income after tax for 2016? Click Save.and Submit to SGVE and submit. Click Sove All Answers to scve all answers
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Fundamentals of Financial Management, Concise Edition (MindTap Course List)

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