Question
I.In 2020, Cane Manufacturing has CAPX of $125,000, Depreciation of $40,000, and EBIT of $450,000.The tax rate is 30%.The following 2019 and 2020 accounts are:
I.In 2020, Cane Manufacturing has CAPX of $125,000, Depreciation of $40,000, and EBIT of $450,000.The tax rate is 30%.The following 2019 and 2020 accounts are:
Item
2019
2020
Required cash
50,000
75,000
Accounts receivable
200,000
250,000
Inventories
300,000
360,000
Accounts payable
100,000
120,000
Accrued liabilities
40,000
50,000
Each part below is worth 5 marks.Answer the following:
a)What is the change in Net Operating Working Capital in 2020?
b)What is the Enterprise Value Cash Flow in 2020?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
