Consider the following financial statements about DANIEL Co. for the current year 2015 1/S for the...

    

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Consider the following financial statements about DANIEL Co. for the current year 2015 1/S for the year ended Dec. 31, 2015 Sales $1,255,250 (712,000) 543,250 CGS GM Expenses: $252,100 8,150 25,000 75,000 360,250 Salaries Other expenses Depreciation Interest Earnings before taxes 183,000 (43,000) $ 140,000 Income tax Net Income Comparative B/S for December 2015 and 2014 Balance sheets Assets 2015 2014 Current assets Cash $ 43,250 $ 20,000 A/R 70,000 50,000 210,000 9,000 Inv 250,000 Prepaid Expenses 7,000 Noncurrent assets Plant assests 600,000 510,000 Less:Acc. Dep (150,000) (125,000) Totals $ 782,250 $ 712,000 Liabilities and Equity Current Liabilities $123,000 A/P Salaries/P Interest/P $115,000 47,250 72,000 25,000 27,000 Noncurrent Liabilities Bond/Payable Equity Common Stock, $10 par R/E 70,000 100,000 370,000 280,000 145,000 120,000 Totals $ 782,250 $ 712,000 Additional information concerning Daniel's transactions during the year ended December 31, 2015: All sales during the year were made on account. All inventory was purchased on account, comprising the total accounts payable account Plant assets costing $90,000 were purchased by paying $40,000 in cash and by using 5,000 shares of stock. The other expenses are related to prepaid items. All income taxes incurred during the year were paid during the year. In order to supplement its cash, Daniel issued 4,000 shares of common stock at par value. There were no penalties assessed for the retirement of bonds. Cash dividends of $?? were declared and paid at the end of the fiscal year. c. Compute FCF using the adjustment formula FCF =CFO - CFI , Hint; tax rate is 43/183 = 0.23497 (don't approximate) (6 marks) d. Compute FCF using the formula FCF =NOPAT - ANOA, excluding cash from operating assets. Hint; tax rate is 43/183 = 0.23497 (don't approximate) (6 marks) Consider the following financial statements about DANIEL Co. for the current year 2015 1/S for the year ended Dec. 31, 2015 Sales $1,255,250 (712,000) 543,250 CGS GM Expenses: $252,100 8,150 25,000 75,000 360,250 Salaries Other expenses Depreciation Interest Earnings before taxes 183,000 (43,000) $ 140,000 Income tax Net Income Comparative B/S for December 2015 and 2014 Balance sheets Assets 2015 2014 Current assets Cash $ 43,250 $ 20,000 A/R 70,000 50,000 210,000 9,000 Inv 250,000 Prepaid Expenses 7,000 Noncurrent assets Plant assests 600,000 510,000 Less:Acc. Dep (150,000) (125,000) Totals $ 782,250 $ 712,000 Liabilities and Equity Current Liabilities $123,000 A/P Salaries/P Interest/P $115,000 47,250 72,000 25,000 27,000 Noncurrent Liabilities Bond/Payable Equity Common Stock, $10 par R/E 70,000 100,000 370,000 280,000 145,000 120,000 Totals $ 782,250 $ 712,000 Additional information concerning Daniel's transactions during the year ended December 31, 2015: All sales during the year were made on account. All inventory was purchased on account, comprising the total accounts payable account Plant assets costing $90,000 were purchased by paying $40,000 in cash and by using 5,000 shares of stock. The other expenses are related to prepaid items. All income taxes incurred during the year were paid during the year. In order to supplement its cash, Daniel issued 4,000 shares of common stock at par value. There were no penalties assessed for the retirement of bonds. Cash dividends of $?? were declared and paid at the end of the fiscal year. c. Compute FCF using the adjustment formula FCF =CFO - CFI , Hint; tax rate is 43/183 = 0.23497 (don't approximate) (6 marks) d. Compute FCF using the formula FCF =NOPAT - ANOA, excluding cash from operating assets. Hint; tax rate is 43/183 = 0.23497 (don't approximate) (6 marks)

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