Using the information for Sarot, Inc., in SE 4, SE 5, and SE 7, compute the cash
Question:
Using the information for Sarot, Inc., in SE 4, SE 5, and SE 7, compute the cash flow yield, cash flows to sales, cash flows to assets, and free cash flow for 2011 and 2012. Net cash flows from operating activities were $84,000 in 2011 and $64,000 in 2012. Net capital expenditures were $120,000 in 2011 and $160,000 in 2012. Cash dividends were $24,000 in both years. Comment on the results
Free Cash FlowFree cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
Transcribed Image Text:
Sarot, Inc. Comparative Income Statements For the Years Ended December 31, 2012 and 2011 Net sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before income taxes Income taxes expense Net income Earnings per share 2012 720,000 448,000 $272,000 160,000 $112,000 28,000 $ 84,000 28,000 S 56,000 2011 $580,000 352,000 $228,000 120,000 $108,000 20,000 $ 88,000 32,000 56,000 Sarot, Inc. Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets $96,000 520,000 Current assets Property, plant, and equipment (net) Total assets 80,000 400,000 $616,000 $480,000 Llabllitles and Stockholders' Equity Current liabilities Long-term liabilities Stockholders equity Total liabilities and stockholders' equity 72,000 88,000 240,000 152,000 $616,000 $480,000 360,000 184,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (12 reviews)
Sarots cash flow adequacy has deteriorated from 2011 to 2012 The cash flow yield decl...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
Implement the following features of the SOS game: (1) the basic components for the game options (board size and game mode) and initial game, and (2) S/O placement for human players without checking...
-
Using the information for Obras, Inc., in SE 4 and SE 5, compute the debt to equity ratio and the interest coverage ratio for 20x8 and 20x9. Comment on the results. (Round computations to one decimal...
-
Net cash flows from operating activities were a. $12,000 b. $20,000 c. $24,000 d. $25,000 Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent-owned subsidiary Oakley Co....
-
Consider J symmetric firms operating in two periods with constant over time cost functions C j (x j , e j ) = (x j b j e j ) 2 /2b j , +c j x 2 j /2 The output prices are exogenous and given by p 1...
-
Several judicial doctrines limit basic tax planning strategies. What are they? Which planning strategies do they limit?
-
Are leadership and management different from one another? If so, how?
-
Lower of Cost and Net Realizable Value Sue Stone, the president of Canoe Home Products, has prepared the following information for the company's television inventory at the end of 2018 :...
-
Due to changing economic conditions and to making its financial statements more comparable to those of other companies in its industry, the management of Kelsea Inc. decided on January 1, 2011, to...
-
(1 point) The graphs of functions f and g are shown below. If you would like to enlarge the graph or make numbers and letters easier to read, you may click on it to open it in a new window. You may...
-
Arrow Manufacturing incurred the following costs in acquiring land, making land improvements, and constructing and furnishing a new building. a. Purchase price of tour acres of land...
-
Using the information for Sarot, Inc, in SE 4 and SE 5, compute the debt to equity ratio and the interest coverage ratio of 2011 and 2012. Comment on the results. Sarot, Inc. Comparative Income...
-
Using the information for Sarot, Inc., in SE 4, SE 5, and SE 9, compute the price/earnings (P/E) ratio and dividends yield for 2011 and 2012. The company had 20,000 shares of common stock outstanding...
-
The following accounts are denominated in pesos as of December 31, 2013. For reporting purposes, these amounts need to be stated in U.S. dollars. For each balance, indicate the exchange rate that...
-
As an operations manager of the hotel, how much he or she can expect to gain in additional quality (percentage wise of the total complaints in the sample) by generally addressing the bottom three...
-
Design the geometry of a hydrostatic bearing to carry a load of 1000000 lbs. If the design constraint allows use water as the lubricant. Other details The inlet temperature is 100F Take the viscosity...
-
If the graph of f(x) has an oblique asymptote y = approaches infinity? 1 3 x = 6, what does f(x) approach as x lim f(x) = Enter your next step here
-
What is the importance of goal-setting when designing a performance management system? What is the role of a job description when designing a performance management system? How does performance...
-
13. This problem refers to the 2 terminal molecular conductor below. T= OK Source and Drain Contacts Molecule Density of States ELUMO -4.0eV Ps =D=-4.5eV source drain VDS Ep = -4.5eV EHOMO -5.0eV...
-
For each of the following situations, state the category (transaction, account, presentation, and disclosure) and management assertion that is most likely violated. a. Inventory en route at the close...
-
Find i 0 (t) for t > 0 in the circuit in Fig. 16.72 . 2 + Vo 1 7.5e-2t u(t) V ( +) 4.5[1 u(t)]V 0.5v. 1H
-
Calculate the force (in newtons) required to push a 40-kg wagon up a 10 incline (Figure 24). 10 40 kg
-
What would be a reason a company would want to understate income? A. To help nudge its stock price higher B. To lower its tax bill C. To show an increase in overall profits D. To increase investor...
-
Which of the following are found on the bank side of the bank reconciliation? A. NSF check B. Interest income C. Wire transfer into clients account D. Deposit in transit
-
Which of the following items are found on a book side of the bank reconciliation? A. Beginning bank balance B. Outstanding checks C. Interest income D. Error made by bank
-
The company purchased equipment on april 1 2 0 1 9 costing $ 1 0 0 , 0 0 0 from dealer on credit , amount payable after three months. the useful life of the asset is estimated at 1 0 yrs with a...
-
Exploit Media, LLC , has three members: WACS Partners, Elyse O Reilly , and Encounter Newspaper, LLC . On January 1 , 2 0 Y 2 , the three members had equity of $ 2 1 7 , 5 0 0 , $ 4 0 , 3 0 0 , and $...
-
Identifying and Computing ROPI Model Inputs Following are the balance sheets and statement of earnings for Home Depot Inc. for fiscal year ended February 3 , 2 0 1 9 , which the company labels fiscal...
Study smarter with the SolutionInn App