Due Friday, February 7th by 5pm Use the following financial statements to complete questions 1-10. Page 1 > of 2 Balance Sheet 2019 2018 P&L 2019 Assets Net Sales 17,000 Current Assets COGS (9,500) Cash 800 800 Gross Income 7,500 Marketable Securities 350 250 Accounts Receivable 1,350 1,000 Depreciation (350) Inventory 2,100 1,500 Marketing (1,200) Total Current Assets 4,600 3,550 R&D (500) Fixed Assets SG&A (1,200) Net PP&E 8,600 7,500 EBIT 4,250 Goodwill 200 200 Total Fixed Assets 8,800 7,700 Interest Expense (600) Total Assets 13,400 11,250 EBT 3,650 Liabilities & Owners' Equity Provision for Taxes (1,000) Current Liabilities Net Income 2,650 Accounts Payable 450 250 Deferred Revenue 200 100 Notes Payable 250 200 Current Portion of LTD 1,000 500 Total Current Liabilities 1,900 1,050 Long-Term Debt 7,000 8,000 Owners' Equity Common Shares APIC 100 100 1,000 900 Retained Earnings 3,400 1,200 Total Owners' Equity 4,500 2,200 Total Liabilities and Owners' Equity 13,400 11,250 1) What is the Operating Cash Flow (OCF)? a) 3,900 b) 2,900 c) 3,000 d) 3,600 ZOOM + 2) What is the Capex (Net Capital Spending)? a) 1,450 FIN 305 b) 1,100 c) 750 d) 1,650 Homework #2 (Last Name Begins with M-R) Page < 2 > of 2 3) How much was invested in Net Operating Working Capital (NOWC) between 2018 and 2019? a) 200 b) 2,700 4) What is the Cash Flow from Assets (CFFA)? a) -450 b) 1,400 c) 750 d) 3,700 c) 1,600 d) 1,750 5) What is the Cash Flow to Equity holders (owners)? a) 100 b) 350 c) 2,300 d) 2,750 6) What is the Cash Flow to Debt holders (creditors)? a) 600 b) 1,000 c) 1,050 d) 1,600 ZOOM + 6) What is the Cash Flow to Debt holders (creditors)? a) 600 b) 1,000 c) 1,050 d) 1,600 7) Was Accounts Receivable a Source or a Use of cash between 2018 and 2019? How much? a) Source; 350 b) Use; 350 8) How much in dividends was paid in 2019? a) 2,300 b) 350 c) Source; 1,350 d) Use; 1,350 c) 2,200 d) 450 9) Was Accounts Payable a Source or a Use of cash between 2018 and 2019? How much? a) Source; 200 b) Use; 200 c) Source; 450 d) Use; 450 10) How much did the firm raise in external equity (positive = sale of shares, negative = share repurchases)? a) Zero b) 100 c) -100 d) 2,300 Page < 2 > of 2 ZOOM +