D Question 13 0.5 pts What is the amount of Change in Net Working Capital for later year (ending year) minus the earlier year (beginning year): 295 40 335 none of the choices are correct Question 14 0.5 pts What is the amount of Net Long-term Assets (recall other terms - Fixed Assets, PPE) on the Balance Sheet for the later year (ending year): 380 750 none of the choices are correct 845 350 Table 2.1 Unilate Textiles: December 31 Balance Sheets ($ millions, except per-share data) 2018 2017 Amount Percentage of Total Assets Amount Percentage of Total Assets 5.3% 21.3 $ 150 180.0 270.0 54650 380.0 $845.0 213 320 5504 450 1000 $ 400 1500 2000 $400.0 3500 $7500 53.396 467 1000 3.6% 7.1 20% 73 Assets Cash and equivalents Accounts receivables Inventory Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current abilities Long-term bonds Total abilities (debu Common stock (25 million shares) Retained earnings Total common equity Total abilities and equity Book value per share (Common equity/Shares Market value per share stock price) Additional Information Net working capital Current assets - Current labilities Net worth Total assets - Total liabilities 5 300 600 40.0 $1300 3000 5430.0 1300 2850 $4150 $845.0 15,4% 355 50.986 154 337 $ 150 55.0 35.0 $1050 255.0 53600 1300 2600 390.0 $7500 140 340 48.00 173 347 520 100% 100.096 $16.60 $23.00 $15.60 525.00 $335.0 415.0 $295.0 3900 Breakdown of net plant and equipment account: Gross plant and equipment Less: Accumulated depreciation Net plant and equipment $6800 300.0) $380.0 $600,0 2500) $350,0 debt. However, because the firm probably would not be able to sell all of the assets at the values shown on the balance sheet, common stockholders actually would re- ceive some amount different (higher or lower) from that shown in the equity section if the firm were actually liq- fannot lue fluctuations (both example, accounts payable generally must be paid wi 30 to 45 days, accruals are payable within 60 to 90 and so on, down to the stockholders' equity acco which represent ownership that never needs to be re Often assets, liabilities, and equity are reporte in dollars and as a percentage of total assets, as Unilate Textiles: Income Statements for Years Ending December 31 accounting and the matching principle. That is, tevennes are recognized when they are earned, not when the cash is received, and expenses are recognized when they are incurred, not when the cash is paid. As a result, not all of for more than one year, depreciation is the meth that is used to match the expense associated the amounts shown on the income statement present cash flows. However, as we mentioned in Chapter 1, the the decrease in the value of the asset to the years value of an investment, such as the firm's wock pice which revenues are generated by its use. For exam is determined by the cash flows it generates. Therefore, Table 2.2 shows that Unilates net income for 2018 although the firm's net income is important, cash flows are even more important because cash is teeded to co 54 million and the depreciation expense for the year tinue normal business operations, including the payment of financial obligations, the purchase of assets and the payment of dividends. As a result, in finance we focus Table 2.2 2017 (5 millions, except per share data) 2018 Percentage of Total Sales 1000 Percentage of Total Sales 100.0% 182.0 18.096 (5.9) Amount 51.435.0 (1,1767 2583 85.00 Amount $15000 (1.2300 $ 2700 12.196 Net sales Variable operating costs 256 of sales Gross profit Pred operating costs, except depreciation Earnings before interest depreciation and amortation (EBITDA Depreciation Net operating income (NO) Earnings before interest and taxes (EBIT) 1733 400 (28) $ 1800 500 51300 1333 350 983 39.31 $59.0 0.0 9.396 (24) 6.996 (27) 4.196 900 360 540 00 Earnings before taxes (EST) 3.6 $ 540 200 Net income Preferred dividends Earnings available to common stockholders EAO Common dividends Addition to retained earnings Per share date 25,000,000 shares): Earnings per share (LACShares Dividends pershane Common dividends/Shares The parentheses indicate a negative $59.0 270) $32.0 $ 216 $ 1.16 5 5 2.36 1.08 the asset is originally purchased. However, because asset is used to generate revenues and its life exter $5 million. Because depreciation that required a cash payment durin net cash flow must be was not an expe ather than nete