Accounting data is used to generate a firm's financial statements, but a firm's intrinsic value is based on its free cash flows, which are the cash flows available for distribution to the company's investors after the company has made all of the investments necessary to sustain its ongoing operations. Consider the following case: J\&H Corp. recently hired Jeffery. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate its potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages. " Last year, J\&H Corp. reported a book value of $350,000 in current assets, of which 40% is cash, 42% is short-term investments, and the rest is accounts receivable and inventory. - The company reported $297,500 of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable outstanding, and there were no changes in the company's accounts payable during the year. - The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $560,000 for its operating long-term assets last year. Income Statement For the Year Ended on December 31 Based on the information given to him, Jeffery submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Complete the following statements in his report. If your answer is negative, use the minus sign. Statement #1: J\&H Corp.'s NOPAT is industry average of Statement #2: The company has no notes payable reported is current operating liabilities total Statement #3: The cash flow is attributable to its annual sheet, so its Statement #4: J\&H Corp.'s total net operating capital of and its total investment in sum of its. Complete the following statements in his report. If your answer is negative, use the minus sign. Statement #1: J\&H Corp.'s NOPAT is industry average of Statement #2: The company has no notes payable reported in its balance sheet, so its current operating liabilities total Statement #3: The cash flow is attributable to its annual Statement #4: J\&H Corp.'s total net sum of its. Complete the following statements in his report. If your answer is negative, use the minus sign. Statement #1: J\&H Corp.'s NOPAT is industry average of Statement #2: The company has no notes payable reported in its balance sheet, so its current operating liabilities total Statemen cash flow i: Statemen sum of its Innual nerence between J\&H's Corp's net income and its net Complete the following statements in his report. If your answer is negative, use the minus sign. Statement #1: J\&H Corp.'s NOPAT is , which is than the industry average of Statement #2: The company has no notes payable reported in its balance sheet, so its current operating liabilities total Statement #3: The difference between J\&H's Corp's net income and its net table to its annual .H Corp.'s total net operating capital of consists of the and its total investment in
