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
- 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:
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|
|
|
| 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:
- What is the change in Net Operating Working Capital in 2020?
- What is the Enterprise Value Cash Flow in 2020?
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Authors: Louis C. Gapenski
4th Edition
1567932800, 978-1567932805
