Question 18 (1 point) Tennis Corporation shows 50 million in retained earnings and has a retention ratio of 50%. Calculate the company's earnings per share given that it has 50 million stocks outstanding $0.50 $1 The above information is not sufficient to determine EPS. $2 Question 19 (1 point) Your balance sheet last year showed 100 million in cash. You just finished your statement of cash flow, which gives you the following information: Net cash provided by operating activities: -10 million Cash used to acquire fixed assets: -50 million Increase in Notes Payable: 25 million Increase in long-term debt: 100 million Dividends paid -50 million What is your addition to your cash position in the balance sheet? 85 million 50 million 10 million None of the answers is correct 15 million Assume your company has purchased equipment for $13 million, which is assumed to operate for the next five years. Use the modified accelerated cost recovery system (MACRS) to calculate the depreciation in the second year. Use the table below to solve the question: MACRS for 5 years Year % 20% 2 32% 3 19.2% 4 11.52% 5 11.52% 6 5.76% $4.16 million $13 million $0 million $2.6 million None of the answers is correct Calculate net operating profit after taxes (NOPAT) of Highlander Corporation if the firm has sales of $1,000,000, operating profit (EBIT) of $100,000, interest expense of $50,000, and taxes of $30,000. $100,000 $70,000 $120,000 None of the answers is correct $30,000 Calculate the cash flow to Shareholders (Stockholders) of NewTech Corporation for 2020. The following financial information is for NewTech Corporation INCOME STATEMENTS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2020 Net Sales Cast of Goods Sold Depreciation Earnings before interest and taxes (EBIT) Interest Taxes Net income available to common stockholders Dividends $1,509.0 7500 65.0 $ 694.0 700 212.0 $ 412.0 $ 103 2020 BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2019 Assets Cash $ 104.0 Accounts receivable 455.0 Inventories 553.0 Total current assets $1,112.0 Fixed assets 1.644.0 Total assets $2,756.0 $ 160.0 688.0 555.0 $1,403.0 $1.7090 3.112.0 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt (bonds) Total debt Common stock (50 million shares) Retained earnings Total common equity Total liabilities and owners' equity $ 232.0 196.0 0 $ 428.0 4080 $836.0 600.0 1.320.0 $ 1,920,0 $2.756.0 $ 266.0 123.0 O $ 389.0 454.0 S843.0 6400 1.6290 $ 2,269.0 $3.112.0 Assume Napster Corporation's income statement in 2020 shows EBIT of $200,000 and depreciation of $50,000. The company's tax is $60,000. Further, assume that the company had $200,000 in fixed assets in 2019 and $213,000 in fixed assets in 2020. Change in net working capital in 2020 is $4,000. Calculate Napster's free cash flow (Cash flow from Assets) for 2020? $ 73,000 $ 123,000 $ 173,000 $ -7,000 None of the answers is correct The following financial information is for NewTech Corporation INCOME STATEMENTS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2020 Net Sales Cost of Goods Sold Depreciation Earnings before interest and taxes (EBIT) Interest Taxes Net income available to common stockholders Dividends S1,509,0 750.0 65.0 $ 694.0 70.0 2120 $_4120 $ 103 BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2019 2020 Assets: Cash Accounts receivable Inventories Total current assets Fixed assets Total assets $ 104.0 455.0 553.0 $1,112.0 1644.0 S2,7756.0 $ 100.0 688.0 555.0 $1,403.0 $1,709.0 3,112.0 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt (bonds) Total debt Common stock (50 million shares) Retained earnings Total common equity Total liabilities and owners' equity $ 232.0 196.0 0 $ 428.0 4080 5836.0 600.0 1.320.0 $ 1.920,0 $2.756.0 $ 2660 123.0 9 $ 389.0 4540 S843.0 640,0 1629.0 S. 2.269.0 $3.112.0
