Question
Use the following information to answer questions 1-7 Consider the following abbreviated financial statements for Boathead Enterprises: BOATHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets
Use the following information to answer questions 1-7
Consider the following abbreviated financial statements for Boathead Enterprises:
| BOATHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets | ||||||||||||||
| Assets |
| Liabilities and Owners Equity |
| |||||||||||
|
|
| 2014 |
|
| 2015 |
|
|
|
| 2014 |
|
| 2015 |
|
| Current assets | $ | 946 |
| $ | 1,008 |
|
| Current liabilities | $ | 385 |
| $ | 404 |
|
| Net fixed assets |
| 3,907 |
|
| 4,600 |
|
| Long-term debt |
| 2,029 |
|
| 2,197 |
|
|
|
|
|
|
|
|
|
| Equity |
| 2,439 |
|
| 3,007 |
|
| BOATHEAD ENTERPRISES 2015 Select IncomeStatement Info | ||
| Sales | $ | 12,340 |
| Costs |
| 5,920 |
| Depreciation |
| 1,050 |
| Interest paid |
| 190 |
The tax rate is 35%. Long term debt trades at par. The firm has 1,000 shares outstanding. Free Cash Flow to the Firm will grow at 2% and the Free Cash Flow to Equity will grow at 7% forever. The weighted average cost of capital is 12%. The cost of equity is 20%. Construct the income statement.
1) What is the Value of the Firm (Assets)?
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Fraud In Accounts Payable How To Prevent It
Authors: Mary S. Schaeffer
1st Edition
0470260459, 978-0470260456
