Question
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.
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