Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.4WUE
Summary Introduction
To calculate:
Introduction:
Cash flow is the inflow and outflow of cash and capital in a business where, a positive cash flow implies rise in the liquid assets, return on capital to the shareholders and more whereas a negative cash flow includes decreasing in the firm’s liquid assets.
The free cash flow indicates whether the company has adequate cash flow to cover both the operating as well as the fixed and current assets investments.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
General Accounting
Compute the additional funds needed.
JHOPE "I am your hope" Company has 10%
net profit margin on sales in previous years
and expects to maintain the
same next year. The Business is expected to
increase its sales level from P1,000,000 to P1
255 000.
The percentages of current sales and current
liabilities that have direct relationship with
sales are 60% and 35%,
respectively. Out of the total earnings at are
expected to be realized next year, 25% will be
retumed to the shareholders
in the form of dividends.
Compute the following:
5. Projected increase in current assets
6. Spontaneous increase in current liabilities
7. Increase in retained earings
8. Additional fund needed.
Managerial Accounting
Chapter 4 Solutions
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Ch. 4.1 - Briefly describe the first four modified...Ch. 4.1 - Describe the overall cash flow through the firm in...Ch. 4.1 - Prob. 4.3RQCh. 4.1 - 4-B Why is depreciation (as well as amortization...Ch. 4.1 - Prob. 4.5RQCh. 4.1 - Prob. 4.6RQCh. 4.1 - Prob. 4.7RQCh. 4.2 - Prob. 4.8RQCh. 4.2 - Prob. 4.9RQCh. 4.3 - Prob. 4.10RQ
Ch. 4.3 - Prob. 4.11RQCh. 4.3 - Prob. 4.12RQCh. 4.3 - What is the cause of uncertainty in the cash...Ch. 4.4 - Prob. 4.14RQCh. 4.5 - Prob. 4.15RQCh. 4.5 - Prob. 4.16RQCh. 4.6 - Prob. 4.17RQCh. 4.6 - What is the significance of the plug figure,...Ch. 4.7 - Prob. 4.19RQCh. 4.7 - Prob. 4.20RQCh. 4 - Opener-in-Review The chapter opener described a...Ch. 4 - Learning Goals 2, 3 ST4-1 Depreciation and cash...Ch. 4 - Prob. 4.2STPCh. 4 - Prob. 4.3STPCh. 4 - Prob. 4.1WUECh. 4 - Prob. 4.2WUECh. 4 - Learning Goal 3 E4-3 Determine the operating cash...Ch. 4 - Prob. 4.4WUECh. 4 - Prob. 4.5WUECh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Learning Goals 2, 3 P4-4 Depreciation and...Ch. 4 - Learning Goal 3 P4-5 Classifying inflows and...Ch. 4 - Prob. 4.6PCh. 4 - Learning Goal 4 P4-8 Cash receipts A firm has...Ch. 4 - Learning Goal 4 P4-9 Cash disbursements schedule...Ch. 4 - Learning Goal 4 P4-10 Cash budget: Basic Grenoble...Ch. 4 - Prob. 4.10PCh. 4 - Prob. 4.11PCh. 4 - Prob. 4.12PCh. 4 - Prob. 4.13PCh. 4 - Learning Goal 4 P4-15 Multiple cash budgets:...Ch. 4 - Prob. 4.15PCh. 4 - Prob. 4.16PCh. 4 - Prob. 4.17PCh. 4 - Prob. 4.18PCh. 4 - Prob. 4.19PCh. 4 - Prob. 4.20PCh. 4 - Prob. 4.21PCh. 4 - Prob. 1SE
Knowledge Booster
Similar questions
- S26-9 Determining present value Learning Objective 3 Use the Present Value of $1 table (Appendix A, Table A-1) to determine the present value of $1 received one year from now. Assume a 8% interest rate. Use the same table to find the present value of $1 received two years from now. Continue this process for a total of five years. Round to three decimal places. Requirements 1. What is the total present value of the cash flows received over the five- year period? 2. Could you characterize this stream of cash flows as an annuity? Why or why not? 3. Use the Present Value of Ordinary Annuity of $1 table (Appendix A, Table A-2) to determine the present value of the same stream of cash flows. Compare your results to your answer to Requirement 1. 4. Explain your findings.arrow_forward1- Calculate the rate of return to be obtained for the investment to be made in the 1st year according to the cash flow diagram below. year 1 4 cash flow, $ -80000 9000 70000 30000arrow_forwardDetermine the rate of return per year for the cash flow series shown below. Year Cash Flow, $ -$100,000 1 -$9,000 $45,000 3 $55,000 4 $75,000 Between 12% and 13% Between 19% and 20% Between 16% and 17% Between 10% and 11% Between 14% and 15%arrow_forward
- How to calculate IRR on excel for the cash flows of $500 received per year for 3 years for an investment of $1,200?arrow_forwardElectronix Inc. Valuation This assignment aligns with Outcome 7: Evaluate business valuation approaches and methodology in communicating findings to stakeholders. Electronix Inc. manufactures electronic products. The company’s weighted average cost of capital is 8 percent. The company forecasted the following free cash flows for the next 20 years: Cash Flows Table Year Free Cash Flows 1 $15,000,000 2 $16,200,000 3 $21,000,000 4 $23,000,000 5 $27,000,000 6-10 $25,000,000 per year 11-20 $21,000,000 per year Prepare a valuation report for Electronix Inc. using the discounted cash flow approach. Identify the accounts taken into consideration in the discounted cash flow method. Compare the difference between future income method and the discounted future cash flow method.arrow_forwardAnswer the first question. The second picture is the formulaarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you