Question
For Dx Incorporated: Cash flows from assets = 300 dollars EBIT (from 2019 INCOME STATEMENT) = 100 dollars depreciation expense (from 2019 INCOME STATEMENT )
For Dx Incorporated:
Cash flows from assets = 300 dollars
EBIT (from 2019 INCOME STATEMENT) = 100 dollars
depreciation expense (from 2019 INCOME STATEMENT ) = 20 dollars
taxes (from 2019 INCOME STATEMENT ) = 40
net fixed assets from BALANCE SHEET dated December 31, 2018 = 1400 dollars
net fixed assets from BALANCE SHEET dated December 31, 2019 = 1160 dollars
Additions to (Changes in) NWC for 2019 = 0 dollars
For Ex Incorporated:
Cash flows from assets = 300 dollars
EBIT (from 2019 INCOME STATEMENT) = 40 dollars
depreciation expense (from 2019 INCOME STATEMENT ) = 0 dollars
taxes (from 2019 INCOME STATEMENT ) = 20
net fixed assets from BALANCE SHEET dated December 31, 2018 = 1400 dollars
net fixed assets from BALANCE SHEET dated December 31, 2019 = 1120 dollars
Additions to (Changes in) NWC for 2019 = 0 dollars
For Fx Incorporated:
Cash flows from assets = 300 dollars
EBIT (from 2019 INCOME STATEMENT) = 300 dollars
depreciation expense (from 2019 INCOME STATEMENT ) = 40 dollars
taxes (from 2019 INCOME STATEMENT ) = 40
net fixed assets from BALANCE SHEET dated December 31, 2018 = 1400 dollars
net fixed assets from BALANCE SHEET dated December 31, 2019 = 1360 dollars
Additions to (Changes in) NWC for 2019 = 0 dollars
Based only on the numbers provided, which company is doing the best ? In other words, if you were an individual investor, in which company would you invest?
A. Dx INCORPORATED
B. Ex INCORPORTATED.
C. Fx INCORPORATED
D. You are indifferent between Ex INCORPORATED and Fx INCORPORATED
E. You are indifferent amongst Dx INCORPORATED, Ex INCORPORTATED, and Fx INCORPORATED because Cash flows from assets is 300 dollars for all three
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