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Please post how to do work too! 3. Analyzing accounting data for managerial decisions Accounting data is used to generate a firm's financial statements, but
Please post how to do work too!
3. Analyzing accounting data for managerial decisions Accounting data is used to generate a firm's financial statements, but a firm's intrinsic value is based on its free cash flows, which are the cash flows avaliable for distribution to the company's investors after the company has made all of the investments necessary to sustain its ongoing operations. Consider the following case: 28H Corp, recently hired Jeffery. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate its potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages. - Last year, J8H Corp, reported a book value of $800,000 in current assets, of which 35% is cash, 37% is short-term investments, and the rest is accounts receivable and inventory. - The company reported $680,000 of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable outstanding, and there were no changes in the company's accounts payable during the year. - The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $1,280,000 for its operating long-term assets last year. Based on the information given to him, Jeffery submits a report on January 1 wath some important calculations for management to use, both for analysis and to devise an action plan. Complete the following statements in his report. If your answer is negative, use the minus sign. Statement #1: JBH Corp.'s NOPAT is , which is than the industry average of Statement $2. The company has no notes payable reported in its balance sheet, so its current operating liabilities total Statement 3 : The difference between J8H's Corp's net income and its net cash flow is attributable to its annual Statement =4:38H Corp.'s total net operating capital of consists of the sum of its and its total investment in Step by Step Solution
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