3. According to an accountant or a banker, what is the Net Working Capital of this firm?

4. According to a financial equity analyst, what is the Net Working Capital of this firm?

5. According to an accountant or a banker, what percent of this firms book value of assets is funded by debt?

6. According to a financial equity analyst, what percent of this firms book value of assets is funded by debt?

7. What is the amount of dividends paid? Hint: use the net income and the change in retained earnings.

8. What is the Net Capital Spending? Hint: use the change in book value of assets and the depreciation

9. What is the Operating Cash Flow? Compute this using four methods:

a. EBIT Approach b. Tax Shield Approach c. Top-Down Approach d. Bottom-Up Approach

10. What is the Cash Flow from Assets? a. Use CFFA = OCF - NCS - Changes in NWC (using OCF from part A in the previous problem) b. Use the payout to owners method

Income Statement Year ended 12/31/2023 Year ended 12/31/2022

Total Revenue 12,000 11,000

Cost of Goods Sold 5,000 4,890

Depreciation & Amortization 1,231 1,122

Earnings Before Interest and Taxes (EBIT) 5,769 4,988

Interest Expense 332 290

Taxable Income 5,437 4,698

Tax Expense 1,080 931

Net Income (Loss) 4,357 3,767

Balance Sheet Year ended 12/31/2023 Year ended 12/31/2022

Assets Current assets:

Cash and cash equivalents 27,157 24,161

Accounts receivable 598 345

Inventory 898 1,234

Total current assets 28,653 25,740

Net Fixed Assets 34,000 33,712

Total assets 62,653 59,452

Liabilities and stockholders' equity

Current liabilities:

Accounts payable & Accrued Operating Liabilities 361 451

Short-term Notes Payable 2,357 2,123

Total current liabilities 2,718 2,574

Long Term Debt 4,578 4,578

Total liabilities 7,296 7,152

Stockholders' equity:

Common stock & Paid-in Capital 2,300 2,300

Retained Earnings 53,057 50,000

Total stockholders' equity 55,357 52,300

Total liabilities and stockholders' equity 62,653 59,452