Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kimbo Widgets Inc, purchased new doaking machinery five years ago for $5million. The machinery can be sold to the Rimalons today for $4.5 million. Kimbo's

image text in transcribed
image text in transcribed
image text in transcribed
Kimbo Widgets Inc, purchased new doaking machinery five years ago for $5million. The machinery can be sold to the Rimalons today for $4.5 million. Kimbo's current statement of financial position shows net fixed assets of $3.5 million, current flabilities of $0.75 million. and net working capital of $350,000. If all the current assets were liquidated today, the company would recelve $1.11 million cash. (Do not round intermediate colculations. Enter the onswers in dollors, not millions of dollors, i.e. 1,234,567. Omit $ sign in your response.) What is the book value of Kimbo's total assets today? Total asset book value $ What is the market value? Total asset market value $ Teeswater Corp, shows the following information on its 2020 statement of comprehensive income: sales =$246,000; costs = $148,000; other expenses =$8,600; depreciation expense =$18,000, interest expense =$13,600; taxes =$18,830; dividends = $13,000. In addition, you're told that the firm issued $6,000 in new equity during 2020 and redeemed $5,200 in outstanding long-term debt. 0. What is the 2020 operating cash flow? (Omit $ sign in your response.) Operating cash flow $ b. What is the 2020 cash flow to creditors? (Omit \$ sign in your response.) Cash flow to creditors $ c. What is the 2020 cash flow to shareholders? (Omit \$ sign in your response.) Cash flow to shareholders $ d. If net fixed assets increased by $25,700 during the year, what was the addition to NWC? (Omit $ sign in your response.) Addition to NWC \$ Our new computer system cost us $114,400. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10 ). Calculate the CCA and UCC values for five years. (Round your intermediote calculotions and finol answers to 2 decimal places. Omit $ sign in your response.) What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance Basic Tools For Nonfinancial Managers

Authors: Judith Baker

2nd Edition

0763726605, 9780763726607

More Books

Students also viewed these Finance questions

Question

Explain budgetary Control

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago

Question

What are the different techniques used in decision making?

Answered: 1 week ago