Consider the following balance sheet and income statement for Motors, Inc: Motors, Inc. 2016 Income Statement...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the following balance sheet and income statement for Motors, Inc: Motors, Inc. 2016 Income Statement (S in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid $9,610 6,310 1,400 1,900 630 $1,270 Taxable Income Less: Current taxes 480 Net income $ 790 Motors, Inc. 2015 and 2016 Balance Sheets ($ in millions) 2015 $ 2,720 $ 2,570 100 $ 2,820 2015 310 $ 2016 405 2016 Accounts payable Notes payable Total Cash Accounts rec. 2,640 3,055 $ 2,570 Inventory Total 3,275 3,850 $ 6,225 $ 7,310 Long-term debt Common stock 7,875 5,000 1.490 8,100 Net fixed assets 10,960 10,670 5,250 2,060 Total liab.& equity $17.185 $17.980 Retained earnings Total assets $17.185 $17.980 28. What is the change in Motors, Inc.'s net working capital from 2015 to 2016? Consider the following balance sheet and income statement for Motors, Inc: Motors, Inc. 2016 Income Statement (S in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid $9,610 6,310 1,400 1,900 630 $1,270 Taxable Income Less: Current taxes 480 Net income $ 790 Motors, Inc. 2015 and 2016 Balance Sheets ($ in millions) 2015 $ 2,720 $ 2,570 100 $ 2,820 2015 310 $ 2016 405 2016 Accounts payable Notes payable Total Cash Accounts rec. 2,640 3,055 $ 2,570 Inventory Total 3,275 3,850 $ 6,225 $ 7,310 Long-term debt Common stock 7,875 5,000 1.490 8,100 Net fixed assets 10,960 10,670 5,250 2,060 Total liab.& equity $17.185 $17.980 Retained earnings Total assets $17.185 $17.980 28. What is the change in Motors, Inc.'s net working capital from 2015 to 2016?
Expert Answer:
Related Book For
Posted Date:
Students also viewed these finance questions
-
Consider the following balance sheet and income statement for Metro Eagle Outfitters, in condensed form, including some information from the cash flow statement: Required Calculate the following...
-
Consider the following balance sheet and income statement for Yum! Brands Inc. (the company that operates Kentucky Fried Chicken and Pizza Hut), in condensed form, including some information from the...
-
Consider the following balance sheet and income statement for Mmm Good Foods Inc. (the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including some information from...
-
1) Assume that we want to build an application for special type of exams. The exam includes True/False questions. The number of questions per exam varies from one exam to other. Given below Question...
-
DS 14.2.4 contains the results of a 24 experiment conducted to investigate the accuracies of two digital weighing machines. The response variable is the deviation of the weight reading from the true...
-
Consider a refrigeration truck traveling at 70 mi/h at a location where the air is at 1 atm and 80°F. The refrigerated compartment of the truck can be considered to be a 9-ft-wide, 8-ft-high, and...
-
Go to the St. Louis Federal Reserve FRED database, and find data on real GDP (GDPC1), potential GDP (GDPPOT), and the unemployment rate (UNRATE) from 1960 to the most recent period. For the...
-
Marvel Parts, Inc., manufactures auto accessories. One of the companys products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use...
-
Treating the porphyrin as a two dimensional square box with length L in each direction, write the expression for the energies of an electron in the box. B) (10 pts) Comment on the degeneracy of...
-
Clean Duds Laundromat has an industrial water softener that enhances the water quality used in its washing machines. The water softener is approaching the end of its useful life and must be either...
-
XYZ Co. uses two types of materials in the production. The following standards were developed: Material M1 M2 Yield Material M1 M2 Standard Mix Standard Unit Price 2 units $20 per unit 3 units 12 per...
-
discuss Fault Tree and Failure Mode Effect Analysis. Describe your understanding of the similarities and differences between these effects and explain your understanding of the potential consequences...
-
historical demand for a product goes as follows: using simple linear regression, calculate the trendline. say the x axis is 1 for april , 2 for many and so on and so on. Calculate a forecast for...
-
4. You are given a relational schema R = ABC, satisfying the following FDs 1. A B 2. AC 3. B C (a) Which normal forms are satisfied? (b) A decomposition into AB and AC is proposed. i. Which normal...
-
Discuss how personal insurance needs are similar or not similarto business needs. Choose and describe an insurance product that can be utilized in your personal life and how it can minimize your...
-
Imagine your client would like to complete a tax inversion, acquiring a foreign company in Switzerland and moving the domicile of the combined company overseas. Your client believes that this will...
-
Niantic reported the following financial information ( amounts in millions ) . Current assets $ 1 2 , 9 6 0 Total assets 1 3 , 2 7 7 Current liabilities 1 , 0 8 0 Net sales 6 , 2 0 0 Net Income 2 6 6...
-
The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan. Before they make their first payment, ABC transfers the right to receive mortgage payments to...
-
Under what conditions is percentage-of completion accounting recommended for construction contractors?
-
(This exercise uses the same information used in Exercise 4-38.) Romney and Associates wishes to forecast its net income for the year 2014. In addition, for planning purposes Romney intends to...
-
On May 23, the company purchased $500,000 in inventory on account. The purchase terms are 2/10, n/30. Make the journal entries to record the purchase of and subsequent payment for these goods...
-
Try drawing up a statement of financial position for Jerry and Company as at 4 March.
-
Assume a business owns a 50 percent stake in a gold mine. As this ownership stake will not give control over the whole of the gold mine, can this resource be regarded as an asset of the business?
-
Does the fact that the level of inventories (and, perhaps, of other factors) may not be typical of their levels at other times in the reporting period pose a problem for external users seeking to...
Study smarter with the SolutionInn App