Question
. Question: Here are some data on FinHere are some data on Fincorp, Inc. Fincorp follows IFRS. The statement of financial position items correspond to
.
Question: Here are some data on FinHere are some data on Fincorp, Inc. Fincorp follows IFRS. The statement of financial position items correspond to values at year-end of 2014 and 2015, while the statement of comprehensive income items correspond to revenues or expenses during the year ending in either 2014 or 2015. All values are in thousands of dollars. 2015 2014 Trade payables $350 $300 Revenue 4,100 4,000 Depreciation (320) (300) Short-term investments 550 430 Inventories 350 300 Long-term debt 2,400 3,000 Provisions 770 680 Administrative expenses (550) (500) Federal and provincial taxes (420) (400) Trade receivables 450 400 Finance incomeb 120 50 Finance expense (150) (150) Property, plant, and equipmentc 5,800 5,000 Dividends paid (410) (410) Cost of goods sold (1,700) (1,600) Cash and cash equivalents 300 800 Taxes are paid in their entirety in the year in which the tax obligation is incurred.
b Finance income is gain in value of short-term investments.
? Property, plant, and equipment are net of accumulated depreciation and impairment losses since the assets were installed.
a. Using the data for Fincorp, determine the cash flow from assets. Treat interest as a financing flow. Cash flow from assets
Using the data for Fincorp, determine the cash flow to bondholders. Treat interest as a financing flow. Cash flow to bondholders
Using the data for Fincorp, determine the cash flow to shareholders. Treat interest as a financing flow.
Cash flow flow to shareholders
Using the data for Fincorp, determine financing flows. Treat interest as a financing flow.
b. Assuming that Fincorp's tax rate is 28%, calculate its after-tax finance expense. After-tax interest expense
c. Using the after-tax finance expense, recalculate cash flow from assets and financing flow. Cash flow from assets
Using the after-tax finance expense, recalculate financing flow.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started