Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[Enterprise Valuation Cash Flows] Find the enterprise valuation cash flow expected for the current year given the following information: Capital expenditures (CAPEX) = $150,000 Depreciation
[Enterprise Valuation Cash Flows] Find the enterprise valuation cash flow expected for the current year given the following information:
Capital expenditures (CAPEX) = $150,000
Depreciation and amortization expenses = $40,000
Earnings before interest and taxes (EBIT) = $400,000
Effective income tax rate = 30%
Last year | Current Year | |
Required Cash | $50,000 | $75,000 |
Surplus Cash | 20,000 | 40,000 |
Accounts receivable | 200,000 | 250,000 |
Inventories | 300,000 | 360,000 |
Accounts payable | 100,000 | 120,000 |
Accrued liabilities | 40,000 | 50,000 |
Bank loan (short-term) | 90,000 | 110,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started