1) Companies generate income from their regular operations and from other sources like interest earned on the securities they hold, which is called non operating income Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation The company had no amortization charges and no non operating income It had $8,000 of bonds outstanding that carry a 7 5 interest rate, and its federal plus state income tax rate was 40 How much was Lindley's operating income, or EBIT 2) Lala Corporation has the following balance sheet How much net operating working capital does the firm have Cash $10 Accounts payable $20 Short term investments 30 Arruals 20 Accounts receivable 50 Notes payable 50 Inventory 40 Current liabilities $90 Current assets $130 Long term debt 60 Net fixed assets 100 Common equity 30 Retained earnings 50 Total assets $230 Total liab equity $230 3) Kopa Inc 's balance sheet showed total current assets of $1,875,000 plus $4,225,000 of net fixed assets All of these assets were required in operations The firm's current liabilities consisted of $475,000 of accounts payable, $375,000 of 6 short term notes payable to the bank, and $150,000 of accrued wages and taxes Its remaining capital consisted of long term debt and common equity What was Kopa's total investor provided operating capital 4) ASW Inc had the following data for last year Net income $800 Net operating profit after taxes (NOPAT) $700 Total assets $3,000 and Total operating capital $2,000 Information for the just completed year is as follows Net income $1,000 Net operating profit after taxes (NOPAT) $925 Total assets $2,600 and Total operating capital $2,500 How much free cash flow did the firm generate during the just completed year

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Posted on Sep 20, 2024

1). Companies generate income from their regular operations and from other sources like interest earned on the securities they hold, which is called non-operating income.

1). Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hold, which is called non-operating income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was Lindley's operating income, or EBIT?

2) Lala Corporation has the following balance sheet. How much net operating working capital does the firm have?

Cash	$10	Accounts payable	$20
Short-term investments	30	Arruals	20
Accounts receivable	50	Notes payable	50
Inventory	40	Current liabilities	$90
Current assets	$130	Long-term debt	60
Net fixed assets	100	Common equity	30
		Retained earnings	50
Total assets	$230	Total liab.& equity	$230
3) Kopa Inc.'s balance sheet showed total current assets of $1,875,000 plus $4,225,000 of net fixed assets. All of these assets were required in operations. The firm's current liabilities consisted of $475,000 of accounts payable, $375,000 of 6% short-term notes payable to the bank, and $150,000 of accrued wages and taxes. Its remaining capital consisted of long-term debt and common equity. What was Kopa's total investor-provided operating capital?	4) ASW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $3,000; and Total operating capital = $2,000. Information for the just-completed year is as follows: Net income = $1,000; Net operating profit after taxes (NOPAT) = $925; Total assets = $2,600; and Total operating capital = $2,500. How much free cash flow did the firm generate during the just-completed year?