Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has the following balance sheet for year 2020 (millions of dollars): Cash $ 12 Accounts payable $ 108 Short-term investment 30 Accruals 72

image text in transcribed
image text in transcribed
A firm has the following balance sheet for year 2020 (millions of dollars): Cash $ 12 Accounts payable $ 108 Short-term investment 30 Accruals 72 Accounts receivable 180 Notes payable 67 Inventory 180 Long-term debt 150 Net Fixed assets 300 Common stock 50 Retained earnings 255 Total liabilities and equity $702 Total assets $702 In 2020, a firm has Sales 500 million, Cost of good solds 300 million, Operating profit (EBIT) of $150 million, Nl of 60 million and tax rate is 40%. In year 2019, a firm has $460 million of total operating capital (i.e., Net operating working capital + net fixed assets). What is the free cash flow for year 2020? O $150 million $492 million $460 million $58 million $300 million 4 pt Question 10 NNR 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 NNR's total investor-provided operating capital? $5,201.250 $5,748,750 O $4,941,188 O $5,475,000 $4,694,128

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Finance questions

Question

Find the budgeted cost of poles purchased in May and June

Answered: 1 week ago