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Given the items in the below image below. 1) How do you put this in a retained earnings statement? 2) How do you determine Cash
Given the items in the below image below.
1) How do you put this in a retained earnings statement?
2) How do you determine Cash Flow Statement?
3) How do you calculate Free Cash Flow?
4) How do you calculate ROIC, EVA, and MVA?
From my understanding, here are the formulas:
Free Cash Flow = NOPAT - Increase in Operational Capital
ROIC = NOPAT / Operating Capital
EVA = NOPAT - (WACC*Op. Capital)
Market Value (MVA) = Market Value of Equity - Book value of Equity
Assignment 2 Statement of Retained Eanings Opening balance of RE Add, Net Income Less, Dividend 2015 2015 150,000 93,750 INCOME STATEMENT Sales Cost of goods sold Other Expenses Depreciation Total Operating Costs EBIT Interest Expense EBT 2014 Closing Balance of RE Statement of Cash Flows 2015 119 30,750 6,000 24,750 9,900 14,850 Op. Balance Net Income Add, Depreciation Less, Increase in AR Less, Increase in Inv Add, Increase in AP Add, Increase in Accruals Net Income BALANCE SHEET Assets Short-Term Investments Accounts Receivables Inventories Total CA Net FA Total Assets 3,750 15,000 30,000 3,750 Less, Cash used to acquire fixed assets Less, Increase in ST Investments 34,500 57,300 129,375 186,675 112,500 162,750 Add, Increase in Notes Payable Add, Increase in LT Debt Add, Increase in Common Stock Less, Dividend Payments Financed Accounts Payable Notes Payable Accruals Total Current Liabilities Long-term debt Common Stock Retained Earnings Total Equity Total Liabilities and Equi 3,000 7,500 7,500 18,000 Closing Balance 7. 8,625 19,575 69,563 51,000 46,538 Free Cash Flows NOPAT 51,000 37,500 88,500 162,750 Operating Capital CA exclusing ST Investments - CL exclusind Notes Payable Net Fixed Assets 186,675 Total Operating Capital Less, Increase in Oper. Capital Stock Market Information Stock Price No. of shares Dividend per share (S) WACC 3,750 Free Cash Flow 12% ROIC ax 40% EVA Market Value of Equity Less,Book Value of Equity Market Value Added (MVA)
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