Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balance Sheet 2019-2020 (In millions) 2019 2020 Current assets $ 1,200.00 $ 1,038.00 2019 $ 2020 $ 700 Current liabilities 400.00 $ 4,600.00 S 5,699.00

image text in transcribed
image text in transcribed
Balance Sheet 2019-2020 (In millions) 2019 2020 Current assets $ 1,200.00 $ 1,038.00 2019 $ 2020 $ 700 Current liabilities 400.00 $ 4,600.00 S 5,699.00 Net fixed assets Total Assets Long term debt $ Owners' equity S Total liabilities and S owners' equity 2,300.00 3,169 6,471 $ 2,750.00 $ 3,859 $ 7,305 $ 6,471 $ 7,305 Partial 2020 Income Statement (In millions) I Sales Costs Depreciation EBIT Interest 15301 7135 1400 6766 400 EBT or taxable income Tax @21% Net income 6366 1336,86 5029.14 1. What is the firm's cash flow from assets for 2020? II. What is the firm's net capital spending for 2020? III. What is the firm's cash flow to stockholders for 2020? I 1V. What is the firm's operating cash flow for 2020? V. What is the firm's cash flow to creditors for 2020? VI. What is the change in net working capital for 2020? VII. What is the book value per share at the end of 2020, assuming 10 million shares outstanding? VIII. What is the return on equity for 2020 (Net income/owners' equity)? IX. What are the tax savings for the firm for having $400 million in tax-deductible interest expense

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

Recommended Textbook for

Stock Trading $Trategies For Self Directed Beginners

Authors: J.r. Zordi

1st Edition

1542378230, 978-1542378239

More Books

Students also viewed these Finance questions