Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shinra Electric Power Company has the following Income statement and balance sheet for 1988. The firm paid out 50% of it's Net Income as Dividends.

Shinra Electric Power Company has the following Income statement and balance sheet for 1988. The firm paid out 50% of it's Net Income as Dividends. What is the firms Cash Flow From Assets from the Free Cash Flow Perspective? (in this problem you must use the Free Cash Flow method to get CFFA, using the Investors perspective method will not give you the same answer due to the limitations of the system.)

(Round to nearest penny and do not enter commas, e.g. 1234.56)

1988 Income Statement
Revenue 207507
Costs 40891
Depreciation 15287
Ebit
Interest Expense 12533
Taxable Income
Tax Expense @ 22%
Net Income

1988 Balance Sheet
Year 1987 1988 1987 1988
Current Assets 16049 17996 Current Liabilities 17492 14811
Fixed Assets 143548 165443 Long-Term Debt 144013 146405
Common Stock 32725 31899

InGen Incorporated has the following Income statement for 2011. What is the firms Operating Cash Flow (OCF) ? (Round to nearest penny and do not enter commas, e.g. 1234.56)

2011 Income Statement
Revenue 177828
Costs 30552
Depreciation 15875
Ebit
Interest Expense 9633
Taxable Income
Tax Expense @ 22%
Net Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rockin Your Business Finances

Authors: Chrstine Odle

1st Edition

0999135104, 9780999135105

More Books

Students also viewed these Finance questions