Question
The most recent years income statement for Modernized Pharma Company was as follows (in millions of dollars): Sales $ 5,750 Cash-based Cost of Goods Sold
The most recent years income statement for Modernized Pharma Company was as follows (in millions of dollars):
Sales | $ 5,750 |
Cash-based Cost of Goods Sold | $ 4,200 |
Depreciation | $ 810 |
Operating Income (EBIT) | $ 740 |
Interest Expense | $ 120 |
Earnings Before Taxes (EBT) | $ 620 |
Income Taxes (25%) | $ 155 |
Net Income | $ 465 |
Modernized Pharmas balance sheets for the two most recent years showed (in millions of dollars):
Most Recent Year | Previous Year | |
Assets: | ||
Cash and Marketable Securities | $ 2,800 | $ 2,170 |
Accounts Receivable | $ 1,150 | $ 1,190 |
Inventory | $ 1,750 | $ 1,830 |
Gross Fixed Assets | $11,250 | $10,190 |
Accumulated Depreciation | ($ 1,900) | ($ 1,090) |
Net Fixed Assets | $ 9,350 | $ 9,100 |
Total Assets | $15,050 | $14,290 |
Liabilities and Owners Equity | ||
Accrued Wages and Taxes | $ 700 | $ 930 |
Accounts Payable | $ 2,340 | $ 1,790 |
Notes Payable | $ 1,400 | $ 1,460 |
Long Term Debt | $ 2,200 | $ 2,010 |
Owners equity | $ 5,000 | $ 5,000 |
Retained Earnings | $ 3,410 | $ 3,100 |
Total Claims | $15,050 | $14,290 |
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Complete a statement of cash flows for the most recent year.
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Compute Modernized Pharmas Net Operating Profit After Taxes (NOPAT)
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Find Operating Cash Flow (OCF) and Free Cash Flow (FCF).
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