Problem Set (Financial Statements) FIRE 371 1) Olay Co. has $3mi net operating working capital and $30 mi net fixed assets. It has sales of $35mi, costs of $20mi, depreciation expense of $2.5mi., interest expense of $750,000, and a tax rate of 34 percent. Calculate the firm's EVA if the weighted average cost of capital (WACC) is 7.25%. 2) Smolira Co. had $190,000 taxable income. Using the following Tax Table, calculate the company's actual taxes paid. Marginal Cumulative Taxable income Average Tax Rates Tax Liability Tax Rates $0 - 50,000 15% $7,500 15.00% 50,001 - 75,000 25% 13,750 18.33% 75,001 - 100,000 34% 22,250 22.25% 100,001 - 335,000 39% 113,900 34.00% 335,001 - 10,000,000 34% 3,400,000 34.00% 10,000,001 - 15,000,000 35% 5,150,000 34.33% 15,000,001 - 18,333,333 38% 6,416,667 35.00% 18,333,334 + 35% 35.00% N/A 3) Thomson Co. had $150,000 and $310,000 in cash on the balance sheet at the end of 2XXO and 2XX1, respectively. Its cash flow from operating activities totaled $2.5mi and its cash flow from long-term investment activities totaled $2mi. The firm issued $500,000 in L-T debt and paid $50,000 dividends. How much common stock did the firm repurchase? 4) During 2XX1, Western Corp issued $3mi in common stocks and purchased $5mi fixed assets. Its cash flow from operating activities totaled $6mi. Its notes payable decreased by $1mi. The firm had $500,000 cash on its balance sheet at the end of 2XXO. Calculate the amount of cash at the end of 2XX1. 5) Based on the following financial statements, calculate: a) Operating Cash Flow (OCF) b) Free Cash Flow (FCF) c) Cash Flow to Creditors d) Cash Flow to Stockholders e) Cash Flow from Assets f) Prepare Statement of Cash Flows