Mailings erences Review View Tell me what you want to do... ~ E E . AaBbCcDc AalbCcDc AaBbC AaBbCc) aty A -- 1 Normal 1 No Spac... Heading 1 Heading 2 Paragraph Styles Example: HO# (2) The financial statements of Flathead Manufacturing Company are shown below: Flathead Lake Manufacturing Income Statement 2012 Sales $ 9,300,000 Cost of Goods Sold 5,750,000 Depreciation Expense 550,000 Gross Profit $ 3,000,000 Selling and Administrative Expenses 2,200,000 EBIT $ 800,000 Interest Expense 200,000 Income before Tax $ 600,000 Taxes 375,000 Net Income 225,000 Flathead Lake Manufacturing Comparative Balance Sheets 2012 Cash 50,000 Accounts Receivable 570,000 Inventory 530,000 Total Current Assets $ 1,150,000 Fixed Assets 2.050.000 2011 $ 40,000 600,000 460,000 $ 1,100,000 1.400.000 2 Paragraph Flathead Lake Manufacturing Comparative Balance Sheets 2012 2011 Cash $ 50,000 $ 40,000 Accounts Receivable 570,000 600,000 Inventory 530,000 460,000 Total Current Assets $ 1,150,000 $1,100,000 Fixed Assets 2,050,000 1,400,000 Total Assets $3,200,000 $2,500,000 Accounts Payable Bank Loans Total Current Liabilities Long-term Bonds Total Liabilities Common Stock (200,000 shares) Retained Earnings Total Equity Total Liabilities and Equity $ 320,000 $ 300,000 480,000 400,000 $ 800,000 $ 700,000 1,500,000 1,000,000 $ 2,300,000 $1,700,000 200,000 200,000 700,000 600,000 $ 900,000 $ 800,000 $ 3,200,000 $2,500,000 Calculate the following: - 1) Net operating profit after taxes 2012 2) Net Operating Working Capital (NOWC) 2012 3) Free Cash Flow (FCF) 2012 if the net Investment in operating capital equal $ 100,000. = net income + non cash change + interest * (1 tax rate)) long term investments investment in working capital = 225,000+ 4) Return on Invested Capital (ROIC) 2012. 5) Net Operating Working Capital (NOWC) 2011 6) Return on Invested Capital (ROIC) 2011 assuming the Net Income for the year 2011 equal $220,000. 7) Tax Rate 0.625