East Coast Yachts is a small manufacturer of costumed yachts on the east coast. East Coast Yachts recently hired Dan Erwin to assist the company with short-term financial planning and also to evaluate the company's financial performance. Dan graduated from college five years ago with a finance degree, and he has been employed in the treasury department of a Fortune 500 company since then.
The company's past growth has been somewhat hectic, in part due to poor planning. Larissa, the company's president, has asked Dan to analyze the company's cash flows. An outside auditor prepares the company's financial statements. You will find the most recent income statement and the balance sheets for the last two years on the next page (See PDF file). Larissa has also provided the following information: During the year, the company raised $40 million in new long-term debt and retired $22.8 million in long-term debt. The company also sold $30 million in new stock and repurchased $36 million. The company purchased $60 million in fixed assets and sold $6,786,000 in fixed assets.
Larissa has asked Dan to prepare the Statement of Cash Flows and calculate the free cash flow, including the NOPAT and the Net Investment. Please, provide a brief analysis of the company's performance for the year under analysis.
Please show the reconciliation to see if the change in cash from the statement is the same as the one in the balance sheet. show the calculation of the free cash flow (FCF). Please can you show work in excel, Greatly appreciate this.
East Coast Yachts 2019 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense Earnings before taxes Taxes Net income 2019 $ $ $ $ $ $ S $ > $ 2020 617,760,000 435,360,000 73,824,000 20,160,000 88,416,000 11,112,000 77,304,000 30,921,600 46,382,400 Dividends Retained earnings $ $ 17,550,960 28,831,440 2019 2020 East Coast Yachts Balance Sheet Current Assets Cash and equivalents Short-term investments Accounts receivables Inventories Other Total current assets Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets $ 9,752,000 $ S 1,000,000 $ $ 19,116,000 $ $ 17,263,200 $ S 1,108,800 $ $ 48,240,000 $ 10,032,000 1,200,000 20,208,000 22,656,000 1,184,000 55,280,000 $ 408,816,000 $ 462,030,000 $ (94,836,000) $ (114,996,000) $ 313,980,000 $ 347,034,000 $ 6,840,000 $ 6,840,000 $ 320,820,000 $ 353,874,000 $ 369,060,000 $ 409,154,000 Current liabilities Accounts payable $ 23,701,440 $ 24,546,000 Notes payable $ 20,220,000 $ 18,725,000 Accrued expenses S 5,472,000 $ 6,185,000 Total current liabilities $ 49,393,440 $ 49,456,000 Long-term debt $ 129,360,000 $ 146,560,000 Total long-term liabilities $ 129,360,000 $ 146,560,000 Stockholder's equity Preferred stock $ 3,000,000 $ 3,000,000 Common stock $ 30,000,000 $ 40,800,000 Capital surplus $ 12,000,000 $ 31,200,000 Accumulated retained earnings $ 157,306,560 $ 186,138,000 Less treasury stock $ (12,000,000) $ (48,000,000) Total equity $ 190,306,560 $ 213,138,000 Total liabilities and shareholders' equity $ 369,060,000 $ 409,154,000 East Coast Yachts 2019 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense Earnings before taxes Taxes Net income 2019 $ $ $ $ $ $ S $ > $ 2020 617,760,000 435,360,000 73,824,000 20,160,000 88,416,000 11,112,000 77,304,000 30,921,600 46,382,400 Dividends Retained earnings $ $ 17,550,960 28,831,440 2019 2020 East Coast Yachts Balance Sheet Current Assets Cash and equivalents Short-term investments Accounts receivables Inventories Other Total current assets Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets $ 9,752,000 $ S 1,000,000 $ $ 19,116,000 $ $ 17,263,200 $ S 1,108,800 $ $ 48,240,000 $ 10,032,000 1,200,000 20,208,000 22,656,000 1,184,000 55,280,000 $ 408,816,000 $ 462,030,000 $ (94,836,000) $ (114,996,000) $ 313,980,000 $ 347,034,000 $ 6,840,000 $ 6,840,000 $ 320,820,000 $ 353,874,000 $ 369,060,000 $ 409,154,000 Current liabilities Accounts payable $ 23,701,440 $ 24,546,000 Notes payable $ 20,220,000 $ 18,725,000 Accrued expenses S 5,472,000 $ 6,185,000 Total current liabilities $ 49,393,440 $ 49,456,000 Long-term debt $ 129,360,000 $ 146,560,000 Total long-term liabilities $ 129,360,000 $ 146,560,000 Stockholder's equity Preferred stock $ 3,000,000 $ 3,000,000 Common stock $ 30,000,000 $ 40,800,000 Capital surplus $ 12,000,000 $ 31,200,000 Accumulated retained earnings $ 157,306,560 $ 186,138,000 Less treasury stock $ (12,000,000) $ (48,000,000) Total equity $ 190,306,560 $ 213,138,000 Total liabilities and shareholders' equity $ 369,060,000 $ 409,154,000
