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Statement of Free Cash Flows (6 questions, 15 points each) Compute 2018 Free Cash Flow for Espresso Patronum. Answer in millions to one decimal place
Statement of Free Cash Flows (6 questions, 15 points each) Compute 2018 Free Cash Flow for Espresso Patronum. Answer in millions to one decimal place li.e. 13.0 mil and not 13,000,000) Free Cash Flows EBIT - Hypothetical Taxes 17 + Depreciation +/- Change in Net Operating Working Capital 15 16 18 Plus This Percentage on Anything Over the Base 15% 25% 34% Taxable Income $0-50,000 $50,001-75,000 $75,001-$100,000 $100,001-335,000 $335,001-10,000,000 $10,000,001-15,000,000 $15,000,001-18,333,333 Over $18,333,333 Pay This Amount on Base Income $0 $7,500 $13,750 $22,250 $113,900 $3,400,000 $5,150,000 $6,416,667 39% 34% 35% 38% 35% Espresso Patronum Coffee Company Income Statement (millions) Income Statement 2018 Sales $ 100 Less: Cost of Goods Sold $ (27) Gross Profit $ 73 Less: Other Operating Expenses $ (15) EBITDA (Earnings Before Interest, Taxes, Depreciation & Ame) $ 58 Less: Depreciation & Amortization $ (15) EBIT (Earnings Before Interest & Taxes) 43 Less: Interest $ EBT/Earnings Before Taxes & Taxable Income) $ 18 Less: Taxes $ (5) Net Income $ 13 Less: Common Stock Dividends $ (5) Addition to Retained Earnings $ 8 S (25) Assets Current Assets Cash Accounts Receivable Inventory Total Espresso Patronum Coffee Company Balance Sheet (millions) 2018 2017 Liabilities & Equity 2018 2017 $ 55 $ 50 Current Liabilities Accrued Wages & Taxes $ 12 $ 10 $ 10 $ 20 Accounts Payable $ 10 $ 5 $ 120 $ 100 Notes Payable $ 5 $ 10 $ 185 $ 170 Total $ 27 $ 25 Fixed Assets $ $ 185 $ 212 $ 135 160 Plant & Equipment Less: Depreciation Net Plant & Equip Other Fixed Assets $ $ $ $ 125 $ 65 Long-Term Debt (35) $ (20) Total Debt 90 $ 45 25 $ 25 Stockholder's Equity Common Stock Retained Earnings Total Equity 300 $ 240 Total Liabilities & Equity * 6 million common shares are outstanding $ $ $ $ 25 $ 63 $ 88 $ 300 $ 25 55 80 240 Total Assets $ 3
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