As a soon-to-be business baccalaureate from Indiana University, your proud parents are wanting you to take...

  

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As a soon-to-be business baccalaureate from Indiana University, your proud parents are wanting you to take over the family business, starting on January 15, 2024. The firm specializes in business computing solutions, maintenance, and repairs, focusing on commercial clients in the Indy-Louisville-Cincy region. Before accepting this offer, you want to know more about the business. First, you evaluate whether you can infuse new technologies into the services profile, most of which stem from the eruption of Artificial Intelligence capabilities washing through the industry. After your impressions about Al and a suitable Business Strategy have been satisfied, you decide to get a better understanding of the cash flows and other financial basics about the business. On December 31, 2022, your parents give you this information about the business for the calendar year 2022: Net Sales COGS Financial Summary for 2022 (all numbers in thousands of USD) Depreciation Interest expense Taxes paid Dividends 850 400 250 77 49 50 Net capital spending Net increase in Working capital Net new borrowing Total interest-bearing Debt as of 12/31 290 50 300 1,600 Based upon the Financial Summary for 2022 provided above, compute the following numbers (5 points each): 1. EBIT 2. Taxable income 3. Tax rate (based upon Taxable Income) 4. Net income 5. Addition to retained earnings 6. Operating cash flow 7. Cash flow from assets 8. Cash flow to creditors 9. Cash flow to shareholders 10. How much net new equity was raised (or retired)? As a soon-to-be business baccalaureate from Indiana University, your proud parents are wanting you to take over the family business, starting on January 15, 2024. The firm specializes in business computing solutions, maintenance, and repairs, focusing on commercial clients in the Indy-Louisville-Cincy region. Before accepting this offer, you want to know more about the business. First, you evaluate whether you can infuse new technologies into the services profile, most of which stem from the eruption of Artificial Intelligence capabilities washing through the industry. After your impressions about Al and a suitable Business Strategy have been satisfied, you decide to get a better understanding of the cash flows and other financial basics about the business. On December 31, 2022, your parents give you this information about the business for the calendar year 2022: Net Sales COGS Financial Summary for 2022 (all numbers in thousands of USD) Depreciation Interest expense Taxes paid Dividends 850 400 250 77 49 50 Net capital spending Net increase in Working capital Net new borrowing Total interest-bearing Debt as of 12/31 290 50 300 1,600 Based upon the Financial Summary for 2022 provided above, compute the following numbers (5 points each): 1. EBIT 2. Taxable income 3. Tax rate (based upon Taxable Income) 4. Net income 5. Addition to retained earnings 6. Operating cash flow 7. Cash flow from assets 8. Cash flow to creditors 9. Cash flow to shareholders 10. How much net new equity was raised (or retired)?

Answer rating: 100% (QA)

Lets calculate the requested numbers based on the provided financial summary for the calendar year 2... View the full answer