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3. Stripe has the following Balance Sheet: S250 500 Assets Cash Accounts Receivable Inventory Current Assets Net Fixed Assets Total Assets SOO Liabilities & Equity
3. Stripe has the following Balance Sheet: S250 500 Assets Cash Accounts Receivable Inventory Current Assets Net Fixed Assets Total Assets SOO Liabilities & Equity $200 Accounts Payable 800 Accruals 690 Notes Payable $1,690 Current Liabilities 1,300 Long-Term Debt $2,990 Common Equity Retained Earnings Total Liabilities & Equity $1,250 720 550 470 $2,990 What is Stripe's Net Operating Working Capital (NOWC) and total investor supplied capital? 4. Consider the following information for Motion Technology: Operating Income Interest Received Interest Paid Dividends Received Dividends Paid $ 520,000 $ 25,000 $ 65,000 $ 30,000 $ 70,000 If the applicable Income Tax Rate is 37% (Federal and State combined), and if 70% of dividends received are exempt from taxes, what are Motion Technology's Taxes? 5. Assume that D'Leon has a weighted average cost of capital of 8%. Calculate the company's EVA for both 2015 and 2016. Note: D'Leon is the company in the power point we went over in class. 6. At the beginning of the year, Escalera Corporation had $200,000 in cash. Looking at its statement of cash flows, you see that the net cash provided by its operations was $300,000 and the company's financing activities provided cash of $400,000. The company's cash position at the end of the year was $285,000. What was the net cash outflow from the firm's long-term investment activities? 7. IBrooks Co. initially has $200 million in assets and is financed 20% with debt and 80% with equity. The company's total asset turnover is 3, the net profit margin is 10%, and Jackson's retention rate is 50%. Based on the firm's business cycle, what are the amounts of debt and equity on the balance sheet after one year of operation (assuming the firm wishes to maintain its 20/80 debt/equity mix)
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