QUESTION 1 Looking at the following Balance Sheet and Income Statement, calculate the Cash Flow From Assets. Remember: (assume that you carried back the tax losses- meaning that we received a tax rebate from the IRS which we treat as a cash inflow) Cash Flow From Assets (CFFA) = Operating Cash Flow (OCF) - Net Capital Spending (NCS) - Changes in NWC (ANWC) OCF = EBIT + depreciation - taxes NCS = ending net FA-beginning net FA + depreciation ANWC = ending NWC-beginning NWC Cash AVR Inventories Total CA Gross FA Less: Dep. Net FA Total Assets 2015 7,282 632,160 1,287,360 1,926,802 1,202,950 263,160 939,790 2,866,592 2014 57,600 Accts payable 351,200 Accruals 715,200 Notes payable 1,124,000 Total CL 491,000 Longterm debt 146,200 Common stock 344.800 Retained earnings 1,468,800 Total Equity Total L &E 2015 524,160 489,600 636,808 1,650,568 723,432 460,000 32,592 492,592 2,866,592 2014 145,600 136,000 200,000 481,600 323,432 460,000 203,768 663,768 1,468,800 2015 $6,034.000 5,528,000 519,988 Sales COGS Other expenses Total oper. costs excl. deprec. & amort. Depreciation and amortization EBIT Interest expense EBT Taxes Net income $6,047,988 116,960 ($ 130,948) 136,012 ($ 266,960) (106,784) ($ 160,176) 2014 $3,432,000 2,864,000 358,672 No. of shares EPS $3,222,672 18,900 DPS $ 190,428 43,828 Stock price $ 146,600 Lease pmts 58.640 $ 87.960 2015 100,000 -$1.602 $0.11 $2.25 $40,000 2014 100,000 $0.88 $0.22 $8.50 $40,000