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Chapter 2 mini case, Please help find the solutions for the green highlighted text, Thank you Operating cash flow Earnings before interest and taxes Depreciation

Chapter 2 mini case, Please help find the solutions for the green highlighted text, Thank you

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Operating cash flow Earnings before interest and taxes Depreciation -Current taxes Operating cash flow Net capital spending Acquisition of fixed assets Sale of fixed assets Capital spending Alternatively, Ending fixed assets -Beginning fixed assets Depreciation Capital spending Net working capital cash flow Ending NWC Beginning NWC NWC cash flow Cash flow from assets OCF -Net capital spending -Change in NWC Cash flow from assets Cash flow to creditors Interest Retirement of debt Debt service Proceeds from sale of long-term debt Total Alternatively Beginning long-term debt Ending long-term debt Interest Total Cash flow to stockholders Dividends Repurchase of stock Cash to stockholders Proceeds from new stock issue Total Alternatively Beginning total equity Ending total equity Dividends Retained earnings Statement of Cash Flows Operations Net income Depreciation Deferred taxes Changes in assets and liabilities Accounts receivable Inventories Accounts payable Accrued expenses Other Total cash flow from operations Investing activties Acquisition of fixed assets Sale of fixed assets Total cash flow from investing activities Financing activties Retirement of debt Proceeds from long-term debt Dividends Repurchase of stock Proceeds from new stock issues Total cash flow from financing activities Change in cash (on balance sheet) Q1. How would you describe Warf Computer's cash flows? Q2. Which cash flow statement more accurately described the cash flows at the company? Nick also has provided the following information: During the year the company raised $274,000 in new long-term debt and retired $238,000 in long-term debt. The company also sold $19,000 in new stock and repurchased $79,000 in stock. The company purchased $1,778,000 in fixed assets and sold $514,000 in fixed assets. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & & & & & & & & & & \\ \hline 7 & & & Bala & ance & leet (in $ & housands) & & & & \\ \hline 8 & & & 018 & & 19 & & & 018 & & 2019 \\ \hline 9 & Current assets & & & & & Current liabilities & & & & \\ \hline 10 & Cash and equivalents & $ & 469 & $ & 542 & Accounts payable & $ & 582 & $ & 623 \\ \hline 11 & Accounts receivable & & 802 & & 859 & Accrued expenses & & 481 & & 296 \\ \hline 12 & Inventories & & 795 & & 769 & Total current liabilities & $ & 1,063 & $ & 919 \\ \hline 13 & Other & & 94 & & 110 & & & & & \\ \hline 14 & Total current assets & $ & 2,160 & $ & 2,280 & & & & & \\ \hline 15 & & & & & & Long-term liabilities & & & & \\ \hline 16 & Fixed assets & & & & & Deferred taxes & $ & 191 & $ & 257 \\ \hline 17 & Property, plant, and equipment & $ & 3,815 & $ & 4,978 & Long-term debt & & 1,379 & & 1,415 \\ \hline 18 & Less accumulated depreciation & & 1,310 & & 1,608 & Total long-term liabilities & $ & 1,570 & $ & 1,672 \\ \hline 19 & Net property, plant, and equipment & $ & 2,505 & $ & 3,370 & & & & & \\ \hline 20 & Intangible assets and others & & 851 & & 952 & Stockholders equity & & & & \\ \hline 21 & Total fixed assets & $ & 3,356 & $ & 4,322 & Preferred stock & $ & 25 & $ & 25 \\ \hline 22 & & & & & & Common stock & & 151 & & 155 \\ \hline 23 & & & & & & Capital surplus & & 934 & & 949 \\ \hline 2 & & & & & & Accumulated retained earnings & & 1,924 & & 3,112 \\ \hline 25 & & & & & & Less treasury stock & & 151 & & 230 \\ \hline 26 & & & & & & Total equity & $ & 2,883 & $ & 4,011 \\ \hline \begin{tabular}{l} 27 \\ 28 \end{tabular} & & & & & & Total liabilities and & & & & \\ \hline 29 & Total assets & $ & 5,516 & $ & 6,602 & shareholders equity & $ & 5,516 & $ & 6,602 \\ \hline 31 & Acquisition of fixed assets & $ & 1,778 & & & & & & & \\ \hline 32 & Sale of fixed assets & $ & 514 & & & & & & & \\ \hline 33 & New debt issued & $ & 274 & & & & & & & \\ \hline 34 & Debt retired & $ & 238 & & & & & & & \\ \hline 35 & New stock issued & $ & 19 & & & & & & & \\ \hline 36 & Stock repurchased & $ & 79 & & & & & & & \\ \hline 38 & Income Statement (in & & & & & & & & & \\ \hline 39 & Sales & $ & 9,068 & & & & & & & \\ \hline 40 & Cost of goods sold & & 5,347 & & & & & & & \\ \hline 41 & Selling, general, and administrative & & 848 & & & & & & & \\ \hline 42 & Depreciation & & 298 & & & & & & & \\ \hline 43 & Operating income & $ & 2,575 & & & & & & & \\ \hline 44 & Other income & & 90 & & & & & & & \\ \hline 45 & EBIT & $ & 2,665 & & & & & & & \\ \hline 46 & Interest expense & & 164 & & & & & & & \\ \hline 47 & Pretax income & $ & 2,501 & & & & & & & \\ \hline 48 & Taxes & & 625 & & & & & & & \\ \hline 49 & Current & & & $ & 559 & & & & & \\ \hline 50 & Deferred & & & $ & 66 & & & & & \\ \hline 51 & Net income & $ & 1,876 & & & & & & & \\ \hline 5 & & & & & & & & & & \\ \hline 53 & Dividends & $ & 688 & & & & & & & \\ \hline 5 & Retained earnings & $ & 1,188 & & & & & & & \\ \hline \end{tabular} Operating cash flow Earnings before interest and taxes Depreciation -Current taxes Operating cash flow Net capital spending Acquisition of fixed assets Sale of fixed assets Capital spending Alternatively, Ending fixed assets -Beginning fixed assets Depreciation Capital spending Net working capital cash flow Ending NWC Beginning NWC NWC cash flow Cash flow from assets OCF -Net capital spending -Change in NWC Cash flow from assets Cash flow to creditors Interest Retirement of debt Debt service Proceeds from sale of long-term debt Total Alternatively Beginning long-term debt Ending long-term debt Interest Total Cash flow to stockholders Dividends Repurchase of stock Cash to stockholders Proceeds from new stock issue Total Alternatively Beginning total equity Ending total equity Dividends Retained earnings Statement of Cash Flows Operations Net income Depreciation Deferred taxes Changes in assets and liabilities Accounts receivable Inventories Accounts payable Accrued expenses Other Total cash flow from operations Investing activties Acquisition of fixed assets Sale of fixed assets Total cash flow from investing activities Financing activties Retirement of debt Proceeds from long-term debt Dividends Repurchase of stock Proceeds from new stock issues Total cash flow from financing activities Change in cash (on balance sheet) Q1. How would you describe Warf Computer's cash flows? Q2. Which cash flow statement more accurately described the cash flows at the company? Nick also has provided the following information: During the year the company raised $274,000 in new long-term debt and retired $238,000 in long-term debt. The company also sold $19,000 in new stock and repurchased $79,000 in stock. The company purchased $1,778,000 in fixed assets and sold $514,000 in fixed assets. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & & & & & & & & & & \\ \hline 7 & & & Bala & ance & leet (in $ & housands) & & & & \\ \hline 8 & & & 018 & & 19 & & & 018 & & 2019 \\ \hline 9 & Current assets & & & & & Current liabilities & & & & \\ \hline 10 & Cash and equivalents & $ & 469 & $ & 542 & Accounts payable & $ & 582 & $ & 623 \\ \hline 11 & Accounts receivable & & 802 & & 859 & Accrued expenses & & 481 & & 296 \\ \hline 12 & Inventories & & 795 & & 769 & Total current liabilities & $ & 1,063 & $ & 919 \\ \hline 13 & Other & & 94 & & 110 & & & & & \\ \hline 14 & Total current assets & $ & 2,160 & $ & 2,280 & & & & & \\ \hline 15 & & & & & & Long-term liabilities & & & & \\ \hline 16 & Fixed assets & & & & & Deferred taxes & $ & 191 & $ & 257 \\ \hline 17 & Property, plant, and equipment & $ & 3,815 & $ & 4,978 & Long-term debt & & 1,379 & & 1,415 \\ \hline 18 & Less accumulated depreciation & & 1,310 & & 1,608 & Total long-term liabilities & $ & 1,570 & $ & 1,672 \\ \hline 19 & Net property, plant, and equipment & $ & 2,505 & $ & 3,370 & & & & & \\ \hline 20 & Intangible assets and others & & 851 & & 952 & Stockholders equity & & & & \\ \hline 21 & Total fixed assets & $ & 3,356 & $ & 4,322 & Preferred stock & $ & 25 & $ & 25 \\ \hline 22 & & & & & & Common stock & & 151 & & 155 \\ \hline 23 & & & & & & Capital surplus & & 934 & & 949 \\ \hline 2 & & & & & & Accumulated retained earnings & & 1,924 & & 3,112 \\ \hline 25 & & & & & & Less treasury stock & & 151 & & 230 \\ \hline 26 & & & & & & Total equity & $ & 2,883 & $ & 4,011 \\ \hline \begin{tabular}{l} 27 \\ 28 \end{tabular} & & & & & & Total liabilities and & & & & \\ \hline 29 & Total assets & $ & 5,516 & $ & 6,602 & shareholders equity & $ & 5,516 & $ & 6,602 \\ \hline 31 & Acquisition of fixed assets & $ & 1,778 & & & & & & & \\ \hline 32 & Sale of fixed assets & $ & 514 & & & & & & & \\ \hline 33 & New debt issued & $ & 274 & & & & & & & \\ \hline 34 & Debt retired & $ & 238 & & & & & & & \\ \hline 35 & New stock issued & $ & 19 & & & & & & & \\ \hline 36 & Stock repurchased & $ & 79 & & & & & & & \\ \hline 38 & Income Statement (in & & & & & & & & & \\ \hline 39 & Sales & $ & 9,068 & & & & & & & \\ \hline 40 & Cost of goods sold & & 5,347 & & & & & & & \\ \hline 41 & Selling, general, and administrative & & 848 & & & & & & & \\ \hline 42 & Depreciation & & 298 & & & & & & & \\ \hline 43 & Operating income & $ & 2,575 & & & & & & & \\ \hline 44 & Other income & & 90 & & & & & & & \\ \hline 45 & EBIT & $ & 2,665 & & & & & & & \\ \hline 46 & Interest expense & & 164 & & & & & & & \\ \hline 47 & Pretax income & $ & 2,501 & & & & & & & \\ \hline 48 & Taxes & & 625 & & & & & & & \\ \hline 49 & Current & & & $ & 559 & & & & & \\ \hline 50 & Deferred & & & $ & 66 & & & & & \\ \hline 51 & Net income & $ & 1,876 & & & & & & & \\ \hline 5 & & & & & & & & & & \\ \hline 53 & Dividends & $ & 688 & & & & & & & \\ \hline 5 & Retained earnings & $ & 1,188 & & & & & & & \\ \hline \end{tabular}

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