Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please somebody can answer? He has just collected financial information regarding two previous years of Powell Panther Corporation. Answer the following questions. a. What will

Please somebody can answer?

He has just collected financial information regarding two previous years of Powell Panther Corporation. Answer the following questions.

a. What will be the after-tax operating profit (UONDI) in 2005?

b. How much does the net operating working capital amount to in both years?

c. How much does the total net operating capital amount to in both years?

d. What is free cash flow in 2005?

e. Why the big dividend increases in that year?

Powell Panther Corporation: results statements for the year ending.

December 31 (in millions of dollars).

2005

2004

Sales

$ 1 200.0

$ 1 000.0

Operating costs excluding depreciation

1 020.0

850

Depreciation

30

25

Interest and tax profits

$150.00

$125.00

Less interest

21.7

20.2

Profit before tax

$128.30

$104.80

Taxes (40%)

51.3

41.9

Net income available to common shareholders

$77.00

$62.90

Common dividends

60.5

4.4

Powell Panther Corporation: General Balances as of December 31 (in millions of dollars)

2005

2004

Active

Cash and equivalent

$12.00

$10.00

Short-term investments

0

0

Accounts receivable

180

150

Inventories

180

200

Total current assets

$372.00

$360.00

Net plant and equipment

300

250

Total asset

$672.00

$610.00

Liabilities and Capital

Accounts payable

$108.00

$90.00

Documents payable

67

51.5

Accumulations

72

60

Total current liabilities

$247.00

$201.50

Long-term bonds

150

150

Total liabilities

$397.00

$351.50

Common shares (50 Million)

50

50

Retained profits

225

208.5

Book capital

$275.00

$258.50

Total liabilities and equity

$672.00

$610.00

Profesor Note: All problems have to be presented in Microsoft Excel with each cell containing formulas underlined in yellow. In addition, you have to present a brief analysis of what the results mean for the company (use the add text box function), not a summary of how you solved the problems.

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

Capital Flows And Foreign Direct Investments In Emerging Markets

Authors: S. MotamenSamadian

1st Edition

1403991545,0230597963

More Books

Students also viewed these Finance questions