Calculate the FCF (Free Cash Flow) to the firm for the forecasting periods and the terminal value.
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate the FCF (Free Cash Flow) to the firm for the forecasting periods and the terminal value.
Show how to exactly calculate the Net Working Capital
Show ALL Steps!!! No Excel
Transcribed Image Text:
BALANCE SHEETS ( 000) Assets Cash & marketable securities Accounts receivable Inventories Current Assets - Total Property, Plant & Equipment Intangible Assets Financial Assets Fixed Assets - Total Total Assets Liabilities Trade payables Bank loan (short-term) Current portion long-term debt Accruals Current liabilities - Total Long-term debt Common stock Retained earnings Total Liabilities 2010 595 2,956 478 4,029 1,894 158 2,052 6,081 2,606 162 34 88 2,890 1,477 500 1,215 6,081 2011 885 3,694 508 5,087 1,725 148 1,873 6,960 3,113 223 33 92 3,462 1,299 500 1,699 6,960 2012 977 4,393 558 5,928 3,250 136 3,386 9,314 3,838 225 85 105 4,253 2,420 500 2,142 9,314 2013 E 1,115 4,948 592 6,655 3,850 212 4,062 10,717 4,589 238 138 109 5,074 2,666 500 2,477 10,717 2014 E 1,216 5,274 609 7,099 4,428 244 4,671 11,770 2015 E 1,337 5,749 669 7,755 4,870 268 5,138 12,894 2016 E 1,418 6,096 709 8,223 5,162 284 5,447 13,669 4,924 5,457 264 287 267 272 117 126 5,572 6,142 2,720 2,535 500 500 500 2,979 3,717 4,708 11,770 12,894 13,669 5,812 305 254 135 6,506 1,955 TV 1,446 6,218 723 8,387 5,266 290 5,556 13,943 5,929 311 196 145 6,580 909 500 5,954 13,943 BALANCE SHEETS ( 000) Assets Cash & marketable securities Accounts receivable Inventories Current Assets - Total Property, Plant & Equipment Intangible Assets Financial Assets Fixed Assets - Total Total Assets Liabilities Trade payables Bank loan (short-term) Current portion long-term debt Accruals Current liabilities - Total Long-term debt Common stock Retained earnings Total Liabilities 2010 595 2,956 478 4,029 1,894 158 2,052 6,081 2,606 162 34 88 2,890 1,477 500 1,215 6,081 2011 885 3,694 508 5,087 1,725 148 1,873 6,960 3,113 223 33 92 3,462 1,299 500 1,699 6,960 2012 977 4,393 558 5,928 3,250 136 3,386 9,314 3,838 225 85 105 4,253 2,420 500 2,142 9,314 2013 E 1,115 4,948 592 6,655 3,850 212 4,062 10,717 4,589 238 138 109 5,074 2,666 500 2,477 10,717 2014 E 1,216 5,274 609 7,099 4,428 244 4,671 11,770 2015 E 1,337 5,749 669 7,755 4,870 268 5,138 12,894 2016 E 1,418 6,096 709 8,223 5,162 284 5,447 13,669 4,924 5,457 264 287 267 272 117 126 5,572 6,142 2,720 2,535 500 500 500 2,979 3,717 4,708 11,770 12,894 13,669 5,812 305 254 135 6,506 1,955 TV 1,446 6,218 723 8,387 5,266 290 5,556 13,943 5,929 311 196 145 6,580 909 500 5,954 13,943
Expert Answer:
Answer rating: 100% (QA)
To calculate the Free Cash Flow FCF to the firm we need to determine the net working capital and the ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
The Pharma Biotech Corporation spent several years working on developing a DHA product that can be used to provide a fatty-acid supplement to a variety of food products. DHA stands for...
-
The following information is available on the Vanier Corporation: BALANCE SHEET AS OF DECEMBER 31, 20X6 (IN THOUSANDS) INCOME STATEMENT FOR 20X6 (IN THOUSANDS) Credit sales..$8,000 Cost of goods...
-
Find all conjugates in C of the given number over the given field. 1+2 over Q
-
Verify the numerical factor 0.121 in Eq. 41-9.
-
A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides smooth shifting and enhances fuel efficiency by 2 mpg of gasoline. The extra cost of a CVT is $800...
-
In Figure P28.73, point P is the common center of two circular arcs of wire, the larger of radius \(70 \mathrm{~mm}\) and the smaller of radius \(20 \mathrm{~mm}\). What are the magnitude and...
-
Jessica sold goods to Stacy for $2,500 and retained a security interest in them. Two months later, Stacy filed a voluntary petition in bankruptcy under Chapter 7. At this time, Stacy still owed...
-
One key limitation of Sage 50 Accounting software, while there is a Sage 50 cloud version that offers some cloud-based features, the mobile access and functionality may not be as extensive as with...
-
The majority of forensic accounting practice involves the valuation of some type of damages or value of a business. Economic damages are a salient service provided by forensic accountants. Lost...
-
As the newest member of the management team of your organization, you have been careful not to overstep your position. At the same time, as a smart Baruch student studying teamwork, you have noticed...
-
In calculating the probability that a project will be finished by some specified time, the probabilities of each path are multiplied together, on the assumption that the paths are independ- ent of...
-
Contrast Six Sigma and BPD.
-
In relation to internal controls, define: (i) A strength. (ii) A deficiency.
-
How is quality handled differently in service firms and prod- uct firms? Does quality mean something different in a ser- vice firm?
-
Do you think people's estimates are more accurate for opti- mistic or pessimistic activity times?
-
In the short run, under perfect competition, more firms enter the market to produce and earn profits since entrepreneurs see how profitable some of the firms are. What will happen over the long run?...
-
Fahrad Inc. sells all of its product on account. Fahrad has the following accounts receivable payment experience: Percent paid in the month of sale .........10 Percent paid in the month after the...
-
Dick's Sporting Goods is a chain of fullline sporting goods retail stores offering a broad assortment of brand name sporting goods equipment, apparel, and footwear. Dick's Sporting Goods had its...
-
The chapter encourages analysts to develop forecasts that are realistic, objective, and unbiased. Some firms managers tend to be optimistic. Some accounting principles tend to be conservative....
-
Identify three economic factors that will drive a firms value-to-book ratio to decrease over time. Identify three accounting factors that will drive a firms value-to-book ratio to decrease over time.
-
Moore Manufacturing Pty Ltd makes refrigerators and is trying to determine the cost of its ending work in process. The accountant has put together the following data for the year ended 30 June 2019....
-
You are provided with the cost of goods manufactured statement and income statement for Prider Manufacturers Ltd. Required (a) Prepare the closing entries for Prider Manufacturers Ltd. Direct...
-
The listing of the ledger accounts (unadjusted) of Smart Manufacturing Systems Pty Ltd at 30 June 2019 is provided. All ledger balances are normal balances. Additional information relating to the...
Study smarter with the SolutionInn App