22. The following is income statement and balance sheet information for a firm. Note: when answering this problem, do not waste time constructing income statements and balance sheets. Use the above information directly. (a) Calculate Net Capital Spending for 2012 (b) Suppose Cash Flow to Stockholders for 2012=12.5. In one, very short sentence) interpret this result. Calculate Cash Flow to Bondholders for 2012. (c) Using the result from part (b) (i.e., do not use the original data), calculate Cash Flow from Assets (i.e., free cash flow. Interpret in one, very short sentence, 23. (a) A firm has current liabilities of $700, a current ratio of 1.4, and a quick ratio of 0.7. Calculate the level of inventory for this firm. (b) Net income is $504, interest expenses $175, and depreciation expense $300. The corporate tax rate is 40%. What is the cash coverage ratio? (c) If a firm's total debt (not debt-equity) ratio =0.2, what is its equity multiplier? 24. Given the following information for Manhattan Inc.: current assets =$200; fixed assets =300; accounts payable =$40; accruals =$50; long-term debt =$110; equity =$300; sales =$250; costs =$200; tax rate =35%; dividend s=$13. Costs, assets, and accounts payable, accruals (wages and taxes payable) maintain a constant ratio to sales (i.e. grow at the same rate as sales =g ). The dividend payout ratio is constant, and projected sales =$300. (i) what is the implied growth rate (g) in sales? (ii) what is the external financing needed? (iii) Suppose, instead, Manhattan, Inc. is operating at 75% capacity with respect to the use of its fixed assets. Would the firm need to increase fixed assets to support sales growth (just answer 'Yes' or 'No', and show the (one) calculation that led to your conclusion). If you answer is 'Yes', what is the firm's forecasted fixed assets and EFN? 22. The following is income statement and balance sheet information for a firm. Note: when answering this problem, do not waste time constructing income statements and balance sheets. Use the above information directly. (a) Calculate Net Capital Spending for 2012 (b) Suppose Cash Flow to Stockholders for 2012=12.5. In one, very short sentence) interpret this result. Calculate Cash Flow to Bondholders for 2012. (c) Using the result from part (b) (i.e., do not use the original data), calculate Cash Flow from Assets (i.e., free cash flow. Interpret in one, very short sentence, 23. (a) A firm has current liabilities of $700, a current ratio of 1.4, and a quick ratio of 0.7. Calculate the level of inventory for this firm. (b) Net income is $504, interest expenses $175, and depreciation expense $300. The corporate tax rate is 40%. What is the cash coverage ratio? (c) If a firm's total debt (not debt-equity) ratio =0.2, what is its equity multiplier? 24. Given the following information for Manhattan Inc.: current assets =$200; fixed assets =300; accounts payable =$40; accruals =$50; long-term debt =$110; equity =$300; sales =$250; costs =$200; tax rate =35%; dividend s=$13. Costs, assets, and accounts payable, accruals (wages and taxes payable) maintain a constant ratio to sales (i.e. grow at the same rate as sales =g ). The dividend payout ratio is constant, and projected sales =$300. (i) what is the implied growth rate (g) in sales? (ii) what is the external financing needed? (iii) Suppose, instead, Manhattan, Inc. is operating at 75% capacity with respect to the use of its fixed assets. Would the firm need to increase fixed assets to support sales growth (just answer 'Yes' or 'No', and show the (one) calculation that led to your conclusion). If you answer is 'Yes', what is the firm's forecasted fixed assets and EFN