Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Case B In 2019, Manufactor Inc. had $ 16,5 million in operating income (EBIT). The company had a net depreciation expense of $3,3 million and

image text in transcribed

Case B In 2019, Manufactor Inc. had $ 16,5 million in operating income (EBIT). The company had a net depreciation expense of $3,3 million and an interest expense of $ 2,2 million; its corporate income tax was 40%. The company has $ 44 million in operating current assets and $ 15,4 million in operating current liabilities, it has $ 49,5 million in net fixed assets. It estimates that it has a post-tax cost of capital of 10%. Assuming that Manufactor's only non-cash item was depreciation, please answer the ensuing questions: a. What was the company's net income after taxes (NEAT) for the year? (5 points) b. What was the company's Net Operating Profit After Taxes (NOPAT)? (5 points) C. What was the company's net operating working capital (WC) and total net operating capital for the current year? (10 points) d. If the Working Capital Ratio (WCR/sales) read 25% in 2019, what was the company's sales revenue? (10 points) e. If total net operating capital was $ 75 million for the previous period (2018), what was the company's Free Cash Flow (FCF) in 2019? (10 points)

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

Mein Ultimativer Weihnachts Planer

Authors: Zizo Nimane

1st Edition

B0CM2J8GTG

More Books

Students also viewed these Finance questions