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Can someone show me how to complete these with workings -Thank you in advance. The following is a comparative balance sheet for a firm for
Can someone show me how to complete these with workings -Thank you in advance.
The following is a comparative balance sheet for a firm for fiscal year 2009 (in millions of dollars): Operating cash Short-term investments (at market) Accounts receivable Inventory Property and plant 2009 60 2008 50 550 500 940 910 2,840 5,300 790 840 2,710 4,890 Accounts payable 2009 1,200 2008 1,040 Accrued liabilities 390 450 Long-term debt 1,840 1,970 Common equity 1,870 5,300 1,430 4,890 The following is the statement of common shareholders' equity for 2009 (in millions of dollars): Balance, end of fiscal year 2008 Share issues from exercised employee stock options Repurchase of 24 million shares Cash dividend Tax benefit from exercise of employee stock options Unrealized gain on investments Net income 1,430 810 (720) (180) 12 50 468 Balance, end of fiscal year 2009 1,870 The firm's income tax rate is 35%. The firm reported $15 million in interest income and $98 million in interest expense for 2009. Sales revenue was $3,726 million. a. Calculate the loss to shareholders from the exercise of employee stock options during 2009. b. The shares repurchased were in settlement of a forward purchase agreement. The market price of the shares at the time of the repurchase was $25 each. What was the effect of this transaction on the income for the shareholders? c. Prepare a comprehensive income statement that distinguishes after-tax operating income from financing income and expense. Include gains or losses from the transactions in questions (a) and (b) above. d. Prepare a reformulated comparative balance sheet that distinguishes assets and liabilities employed in operations from those employed in financing activities. Calculate the firms' financial leverage and operating liability leverage at the end of 2009. e. Calculate free cash flow for 2009Step by Step Solution
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