Question
For the current year sales are $1,400,000, current assets are $101,524, and current liabilities are $85,265. If sales are forecasted to increase 14% next year,
For the current year sales are $1,400,000, current assets are $101,524, and current liabilities are $85,265. If sales are forecasted to increase 14% next year, and all current assets and current liabilities vary proportionally with sales (i.e. they are spontaneous items), what is the forecasted amount of net working capital next year?
A firms existing asset base can support total sales of up to $2,500,000. Current sales are at $2,000,000. What is the firms current utilization rate of its assets?
In the current year, a company reported cash flow from operating activities of $100,000, cash flow from investing activities of ($60,000), and cash flow from financing activities of ($40,000). In addition, the company paid interest of $20,000, had net capital expenditures of $50,000, and issued net new debt of $15,000. The marginal tax rate is 35%. Compute the free cash flow to equity for the current year.
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