Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2019 $945,000 812,700 $132,300 33.100 $99,200 10470 $88,730 22.183 566.547 2018 $900,000 774.000 $125,000 31.500 $94,500 8.600 $35,900 21,475 564.425 A computer manufacturer has financial

image text in transcribed
image text in transcribed
2019 $945,000 812,700 $132,300 33.100 $99,200 10470 $88,730 22.183 566.547 2018 $900,000 774.000 $125,000 31.500 $94,500 8.600 $35,900 21,475 564.425 A computer manufacturer has financial statements as follows: Income Staternents for Year Ending December 31 (Thousands of Dollars) Sales Expenses excluding depreciation and amortization EBITDA Depreciation and amortization EBIT Interest Expense EBT Taxes (25%) Net income Common dividends Addition to retained earings Balance Sheets for Year Ending December 31 (Thousands of Dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Total assets $56,609 $9,938 $54,115 $10,310 2019 547,250 3,800 283,500 141.750 $476,300 330.750 $807.050 2018 $45,000 3,600 270,000 135.000 $453,600 315.000 $768.600 I Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity 594,500 47,250 26.262 $168,012 94500 $262,512 444.600 99.939 $544,538 SRO74050 $90,000 45,000 9.000 $144,000 90.000 $234,000 444,600 90.000 $534.600 $769.600 Other data Tax rate Shares outstanding Stock price WACC 25% 15,000,000 $65 per share 896 2. What is free cash flow? Why is it important? (6 pts) a) What is the company's net operating profit after taxes in 2019 (NOPAT)? (3 pts) b) What are operating current assets? How much operating current assets does the company have in 2019? (3 pts) c) What are operating current liabilities? How much operating current liabilities does the company have in 2019? (3 pts) d) How much net operating working capital does the company have in 2019? (3 pts) e) How much total net operating capital does the company have in 2019? (3 pts) What is the company's return on invested capital (ROIC) in 2019? (3 pts) e) What is the company's EVA in 2019? (3 pts) h) What is the company's MVA in 2019? (3 pts)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management

Authors: Anthony Saunders, Marcia Cornett

8th Edition

0078034809, 978-0078034800

More Books

Students also viewed these Finance questions

Question

suggest a range of work sample exercises and design them

Answered: 1 week ago