(Interpreting financial statements and measuring cash flows) Given the information for Pamplin Inc. in the hyperlinks below: a. How much is the firm's net working capital and operating working capital, and what is the debt ratio for 2008? b. Complete a common-sized income statement and a common-sized balance sheet for 2008. c. Compute free cash flows and financing cash flows for 2008. Interpret your results. Pamplin Inc. Balance Sheet at 12/31/2007 and 12/31/2008 Definition Pamplin Inc. Income Statement for Years Ending 12/31/2007 and 12/31/2008 a. How much is the firm's net working capital and operating working capital, and what is the debt ratio for The i Definition The The Pamplin Inc. Balance Sheet at 12/31/2007 and 12/31/2008 ASSETS 2007 Cash $200 Accounts receivable 450 Inventory 550 Current assets $1,200 Plant and equipment $2,200 Less accumulated depreciation - 1,000 Net plant and equipment $1,200 Total assets $2,400 2008 $155 424 621 $1,200 $2,644 - 1.246 $1,398 $2,598 b. terpret Sal je decim Pamplin Inc. Income Statement for Years Ending 12/31/2007 and 12/31/2008 2007 2008 Sales $1,200 $1,443 Cost of goods sold 700 846 Gross profit $500 $597 Selling, general and administrative expenses $30 $43 Depreciation 220 250 246 289 Operating income $308 Interest expense 50 66 Net income before taxes $200 $242 Taxes (40%) 80 97 Net income $120 $145 LIABILITIES AND OWNERS' EQUITY Col $250 e decin 2008 $145 152 $297 Gro 2007 $200 0 $200 $600 e decin Sell he decin $600 Accounts payable Notes payable--current (9%) Current liabilities Bonds Owners' equity Common stock Retained earnings Total owners' equity Total liabilities and owners' equity De he decin Print Done $900 700 $1,600 $2,400 $900 801 $1,701 $2,598 Op he decin Interest expense $66 4.6% (Round to one decin Print Done Enter your answer in the edit fields and then click Check Answer. Pamplin Inc. Balance Sheet at 12/31/2007 and 12/31/2008 Pamplin Inc. Income Statement for Years Ending 126 11/2007 and 126 11/2008 Operating income $ 145 (Round to the nearest dollar.) Depreciation $ 289 (Round to the nearest dollar.) Income taxes $ 97 (Round to the nearest dollar.) After-tax cash flows from operations $ 145 (Round to the nearest dollar.) Increase in current assets GA (Round to the nearest dollar.) Increase in accounts payable si (Round to the nearest dollar.) Increase in gross fixed assets (Round to the nearest dollar.) Free Cash Flows (Round to the nearest dollar.) Financing Cash Flows Interest expense $ 66 (Round to the nearest dollar.) Increase in short-term interest bearing debt (Round to the nearest dollar.) Dividend i (Round to the nearest dollar.) $ (Round to the nearest dollar.) Financina Cash Flows Enter your answer in the edit fields and then click Check Answer. All parts showing Clear All (Interpreting financial statements and measuring cash flows) Given the information for Pamplin Inc. in the hyperlinks below: a. How much is the firm's net working capital and operating working capital, and what is the debt ratio for 2008? b. Complete a common-sized income statement and a common-sized balance sheet for 2008. c. Compute free cash flows and financing cash flows for 2008. Interpret your results. Pamplin Inc. Balance Sheet at 12/31/2007 and 12/31/2008 Definition Pamplin Inc. Income Statement for Years Ending 12/31/2007 and 12/31/2008 a. How much is the firm's net working capital and operating working capital, and what is the debt ratio for The i Definition The The Pamplin Inc. Balance Sheet at 12/31/2007 and 12/31/2008 ASSETS 2007 Cash $200 Accounts receivable 450 Inventory 550 Current assets $1,200 Plant and equipment $2,200 Less accumulated depreciation - 1,000 Net plant and equipment $1,200 Total assets $2,400 2008 $155 424 621 $1,200 $2,644 - 1.246 $1,398 $2,598 b. terpret Sal je decim Pamplin Inc. Income Statement for Years Ending 12/31/2007 and 12/31/2008 2007 2008 Sales $1,200 $1,443 Cost of goods sold 700 846 Gross profit $500 $597 Selling, general and administrative expenses $30 $43 Depreciation 220 250 246 289 Operating income $308 Interest expense 50 66 Net income before taxes $200 $242 Taxes (40%) 80 97 Net income $120 $145 LIABILITIES AND OWNERS' EQUITY Col $250 e decin 2008 $145 152 $297 Gro 2007 $200 0 $200 $600 e decin Sell he decin $600 Accounts payable Notes payable--current (9%) Current liabilities Bonds Owners' equity Common stock Retained earnings Total owners' equity Total liabilities and owners' equity De he decin Print Done $900 700 $1,600 $2,400 $900 801 $1,701 $2,598 Op he decin Interest expense $66 4.6% (Round to one decin Print Done Enter your answer in the edit fields and then click Check Answer. Pamplin Inc. Balance Sheet at 12/31/2007 and 12/31/2008 Pamplin Inc. Income Statement for Years Ending 126 11/2007 and 126 11/2008 Operating income $ 145 (Round to the nearest dollar.) Depreciation $ 289 (Round to the nearest dollar.) Income taxes $ 97 (Round to the nearest dollar.) After-tax cash flows from operations $ 145 (Round to the nearest dollar.) Increase in current assets GA (Round to the nearest dollar.) Increase in accounts payable si (Round to the nearest dollar.) Increase in gross fixed assets (Round to the nearest dollar.) Free Cash Flows (Round to the nearest dollar.) Financing Cash Flows Interest expense $ 66 (Round to the nearest dollar.) Increase in short-term interest bearing debt (Round to the nearest dollar.) Dividend i (Round to the nearest dollar.) $ (Round to the nearest dollar.) Financina Cash Flows Enter your answer in the edit fields and then click Check Answer. All parts showing Clear All
