Question
I need help with the last section of this excel file. Are my calculations for net cash flows correct? If not please explain exactly how
I need help with the last section of this excel file. Are my calculations for net cash flows correct? If not please explain exactly how they should be calculated. Please also double check my change in working capital numbers. Thank you!
| YEAR | 0 | 1 | 2 | 3 | 4 | |
| SALES REVENUE: | ||||||
| Season Pass Market | ||||||
| # of Passes | 4800 | 5160 | 5547 | 5963 | ||
| Price per Pass | $730.00 | $751.90 | $774.46 | $797.69 | ||
| SEASON PASS SALES REVENUE | $3,504,000.00 | $3,879,804.00 | $4,295,929.62 | $4,756,625.47 | ||
| Daily Lift Tickets | ||||||
| # of Tickets Sold | 1,200,000 | 1344000 | 1505280 | 1685914 | ||
| Price per Ticket | $60.00 | $61.80 | $63.65 | $65.56 | ||
| DAILY LIFT TICKET SALES REVENUE | $72,000,000.00 | $83,059,200.00 | $95,811,072.00 | $110,528,521.80 | ||
| TOTAL SALES REVENUE | $ 75,504,000.00 | $ 86,939,004.00 | $ 100,107,001.62 | $ 115,285,147.27 | ||
| VARIABLE COSTS: | ||||||
| Season Pass Market | ||||||
| # of Passes | 4800 | 5160 | 5547 | 5963 | ||
| cost per Pass | $600.00 | $618.00 | $636.54 | $655.64 | ||
| Season Pass Costs | $2,880,000.00 | $3,188,880.00 | $3,530,887.38 | $3,909,558.66 | ||
| Daily Lift Tickets | ||||||
| # of Tickets Sold | 1,200,000 | 1344000 | 1505280 | 1685914 | ||
| Price per Ticket | $27.00 | $27.81 | $28.64 | $29.50 | ||
| Lift Ticket Costs | $32,400,000.00 | $37,376,640.00 | $43,117,691.90 | $49,740,581.18 | ||
| TOTAL VARIABLE COSTS | $35,280,000.00 | $40,565,520.00 | $46,648,579.28 | $53,650,139.84 | ||
| FIXED COSTS: | ||||||
| Marketing & Administrative | 15,000,000 | 15,300,000 | 15,606,000 | 15,918,120 | ||
| Depreciation | 14290000 | 24490000 | 17490000 | 12490000 | ||
| TOTAL FIXED COSTS | 29,290,000 | 39,790,000 | 33,096,000 | 28,408,120 | ||
| EARNINGS BEFORE INTEREST And TAXES (EBIT) | $ 10,934,000.00 | $ 6,583,484.00 | $ 20,362,422.34 | $ 33,226,887.43 | ||
| Corporate Tax Expense | $ 3,826,900.00 | $ 2,304,219.40 | $ 7,126,847.82 | $ 11,629,410.60 | ||
| After-tax Earnings (EBIT(1-t)) | $ 7,107,100.00 | $ 4,279,264.60 | $ 13,235,574.52 | $ 21,597,476.83 | ||
| Add: | Depreciation | 14290000 | 24490000 | 17490000 | 12490000 | |
| Operating cash flows | $ 31,147,100.00 | $ 38,714,264.60 | $ 40,869,474.52 | $ 44,434,254.83 | ||
| OTHER ITEMS | ||||||
| Level of Working Capital | 15,000,000 | $ 13,040,850.60 | $ 15,016,050.24 | $ 17,292,772.09 | 0 | |
| Change in Working Capital | $ 1,959,149.40 | $ (1,975,199.64) | $ (2,276,721.85) | $ 17,292,772.09 | ||
| Less: | Change in WC | $1,959,149.40 | -$1,975,199.64 | -$2,276,721.85 | $17,292,772.09 | |
| Less: | Capital Expenditure | 100,000,000 | ||||
| Add: | Asset sales proceeds | 30,000,000 | ||||
| Add: | Tax savings from capital losses | 434000 | ||||
| NET CASH FLOW FROM ASSETS | -115,000,000 | $ 33,106,249.40 | $ 36,739,064.96 | $ 38,592,752.67 | $ 92,161,026.92 |
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Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
9781285632544, 1111530769, 1285632540, 978-1111530761
