Question
I am having a hard time with a FIN 300 question. and I need to explain how I got the answers. THe answers are provided
I am having a hard time with a FIN 300 question. and I need to explain how I got the answers. THe answers are provided below but I don't understand how they were derived. Can you please provided a detailed step by step explanation and help me.
PROBLEM
Below are the key figures for the company Ivankovic over the last five years.
1 2 3 4 5
Fixed assets 100 110 120 130 140
Working capital 200 225 250 280 315
EBITDA 38 40 44 48 52
Depreciation and
amoritzation 10 10 11 12 13
Financial expense 14 15 17 19 22
Income tax expense 7 7.5 8 8 8.5
Dividends 5 5 5 6 6
The correct answer to this question is:
Cash flow statement
2 3 4 5
Cash flow 17.5 19 21 21.5
Change in working capital 25 25 30 35
cash flow from
operating activities 7.5 -6 -9 -13.5
Capital expenditures 20 21 22 23
Dividends paid 5 5 5 6
Decrease in net debt -32.5 -32 -36 -42.5
These are the correct answers. I am unsure as to how they were reached. Please help with detailed step by step
Draw up the cash flow statement for years two to five. State your views.
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