BOD CORPORATION Balance Sheets as of Decmeber 31, 2014 and 2015 (s in millions) 2014 2015 2015 Assets Current Assets Cash Accounts Receivable Inventory Total $ 145 525 440 $ 1110 2014 Liabilities and Owners' Equity Current Liabilities Accounts Payable 275 Notes Payable 240 Total $ 515 180 600 480 $ 1.260 310 180 490 $ Fixed Assets Net Fixed Assets $ 1.530 $ 1.675 $ 375 $ 425 Long Term Debt Owners' Equity Common stock plus paid-in surplus Retained Earnings Total 650 1.100 $ 1.750 680 1,340 $ 2,020 Total Assets $ 2,640 $ 2,935 Total liabilities and owners' equity $ 2,640 $ 2.935 BOD CORPORATION 2015 Income Statement (s in Millions) Net Sales Cost of Goods Sold Depreciation EBIT Interest Paid Taxable income Taxes Net Income $ 1,610 835 55 $ 720 80 $ 640 224 $ 416 Dividends Addition to Retained Earnings 176 240 1. Calculate the networking capital for both year end 2014 and 2015 2. List in order from most to least, the liquidity of BOD Corps assets. 3. What is BOD Corps. Average and Maloval tax rates. 4. Calculate the operating cash flow for 2015. 5. Calculate the company's capital spending for 2015. 6. Calculate the company's change in net working capital for 2015 7. Calculate the company's Cash flow from Assets 8. Calculate the company's cash flow to creditors 9. Calculate the company's cash flow to stockholders. 10. Construct the cash flow identity for BOD Corporation. 11. Assuming the BOD Corp. has 200 million shares outstanding, calculate the earnings per share and the dividends per share for 2015. 12. BOD Corp can sell its fixed assets for $1,800 million and its current assets for $1,350 million today. What is the book and market value of BOD Corp. assets The following question does not require use of BOD Corporation's financial statements. 13. The Fly Leaf Co. had $315,000 in taxable income. Using the rates from table 2.3 in the chapter, calculate the company's income taxes. Taxable Income Tax Rate $ 0- 50,000 50,001 - 75,000 75,001 - 100,000 100,001 - 335,000 335,001-10,000,000 10,000,001 -15,000,000 15,000,001-18,333,333 18,333,334+ 15% 25 34 39 34 35 38 35