Given the following information for Viktor Industries (led ably by Viktor), compute the firm's
free cash flows for the year 2010, first from an operating perspective, and then
from a financing perspective.
Additionally, CALCULATE THE FOLLOWING RATIOS FOR FY03:
Accounts Receivable Turnover, Times Interest Earned, Current Ratio, Inventory Turnover, Debt Ratio
SHOW ALL WORK! (Total Points = 15 points)
Viktor Balance Sheet					Viktor Industries
For December 31, 2009 and December 31, 2010					For the Years Ended December 31, 2009 and December 31, 2010
		2009	2010
							2009	2010
Cash		7000	2500		Sales		100000	140000
Accounts Receivable		10500	16000		COGS		60000	84000
Inventories		27000	48500			Gross Margin	40000	56000
	Total Current Assets	44500	67000
					Operating Expenses
Land		30000	36000			Fixed	11000	11000
Buildings and Equip.		75000	85000			Variable	10000	14000
	Less: Acc. Depreciation	28000	38000			Depreciation	4500	10000
	Total Fixed Assets	77000	83000			Total Operating Expenses	25500	35000
	Total Assets	121500	150000		EBIT (Operating Inc.)		14500	21000
						Interest	3000	6100
Accounts Payable		6500	26000		Earnings Bef. Taxes		11500	14900
Bank Notes		30000	43000		Taxes		5750	7450
	Total Current Liabilities	36500	69000		Net Income		5750	7450
Long-Term Debt		27750	21950
	Total Liabilities	64250	90950
Common Stock		31500	31500
Retained Earnings		25750	27550	1800
	Total Equity	57250	59050
	Total Liabilities and Equity	121500	150000
Free Cash Flow: Operating Perspective				Free Cash Flow: Financing Perspective
EBITDA				Interest Expense
Less Taxes (cash)				Dividends		-5650
After tax cash flows				Increase in ST notes
				Decrease in LT notes
Change in net operating working capital
Cash
Accounts Receivable				Ratio Analysis		FY10
Inventories				AR Turnover
Accounts Payable				TIE Ratio
				Current Ratio
Change in fixed assets and land				Inventory Turns
Purchase of Land				Debt Ratio
Purchase of Buildings
Free Cash Flows (Operating Perspective)