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Please help with c. Use the financial data presented to determine Tracks operating cash flow (OCF) and free cash flow (FCF) in 2015. Evaluate your
Please help with "c. Use the financial data presented to determine Tracks operating cash flow (OCF) and free cash flow (FCF) in 2015. Evaluate your findings in light of Tracks current cash flow difficulties." Please show all of your work, and if you could do it in excel it would be really helpful, too. Thanks!
Track Software, Inc., Balance Sheet ($000) Track Software, Inc., Profit, Dividends, and Retained Earnings, 2009-2015 Net profits after Dividends 2015 2014 paid retained carnings [(1)(2) Year 82 104 145 $362 $180 52 $128 $490 (S50,000) S 0 Accounts receivable ($50,000) (20,000) 15,000 35,000 39,000 40,000 43,000 152 2010 2011 2012 2013 2014 2015 15,000 35,000 Total current assets Gross fixed assets $195 1,000 43,000 Net fixed assets $132 5,000 Total assets Track Software, Inc., Income Statement ($000) for the Year Ended December 31, 2015 Liabilities and stockholders' equity Accounts payable Notes payable $136 200 $126 190 2 25 5341 S 38 $ 40 5401 $381 Sales revenue S 1,550 Less: Cost of goods sold Total current liabilitics $363 Gross profits Long-term debt Common stock (50,000 shares outstanding Paid-in capital in excess of par Less: Operating expenses Total liabilities Selling expense General and administrative expenses Depreciation expense $ 150 at $0.40 par value) 30 30 Total operating expense Retained earnings 102 Operating profits (EBIT) Net profits before taxes Net profits after taxes Total stockholders' equity Total liabilities and stockholders' equity $109 $490 Less: Interest expense Less: Taxes (20%) c. Use the financial data presented to determine Track's operating cash flow (OCF) and free cash flow (FCF) in 2015. Evaluate your findings in light of Track's cur rent cash flow difficulties NOPAT EBIT (1-T) OCF = NOPAT + Depreciation OCF = [EBIT (1-T)] + Depreciation FCF OCF - Net fixed asset investment (NFAI) Track Software, Inc., Statement of Retained Earnings ($000) for the Year Ended December 31, 2015 Retained earnings balance January 1, 2015) Plus: Net profits after taxes for 2015) Less: Cash dividends on common stock (paid during 2015) 48 Retained earnings balance (December 31, 2015) $102 Net current asset investment (NCAI) Change in nct fixed assets + Depreciation Change in current assets-Change in (accounts payable + accruals) NFAI NCAIStep by Step Solution
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