Malkom Ray Corporation Balance Sheet for December 31, 20x8 and 20x9 20x9 20x8 Cash and Marketable Securities
Fantastic news! We've Found the answer you've been seeking!
Question:
Malkom Ray Corporation Balance Sheet for December 31, 20x8 and 20x9
20x9 | 20x8 | |
Cash and Marketable Securities | $ 10,000 | $ 9,000 |
Account Receivables | 16,000 | 12,500 |
Inventories | 45,500 | 29,000 |
Total Current Assets | $ 71,500 | $ 50,500 |
Land | 26,000 | 20,000 |
Building and Equipment | 100,000 | 70,000 |
Less accumulated depreciation | (38,000) | (28,000) |
Total Fixed Assets | $ 88,000 | $ 62,000 |
Total Assets | $159,500 | $112,500 |
Accounts Payable | $ 17,000 | $ 6,500 |
Accrued Expenses | 5,000 | 4,000 |
Short-term notes | 47,000 | 17,000 |
Total Current Liabilities | $ 69,000 | $ 27,500 |
Long-term Debt | 27,450 | 28,750 |
Common Stock | 31,500 | 31,500 |
Retained Earnings | 31,550 | 24,750 |
Total Debt and Equity | $159,500 | $112,500 |
Table 2: Malkom Ray Corporation Income Statement
Malkom Ray Corporation Income Statement for December 31, 20x9
20x9 | |
Sales | $160,000 |
Cost of Goods Sold | 96,000 |
Gross Profit | $ 64,000 |
Operating Expenses | |
Fixed cash operating expenses | $ 21,000 |
Variable operating expenses | 16,000 |
Depreciation | 10,000 |
Total Operating Expenses | $ 47,000 |
Earnings Before Interest and Taxes | $ 17,000 |
Interest Expense | 6,100 |
Earnings Before Taxes | $ 10,900 |
Income Taxes | 3,900 |
Net Income (Loss) | $ 7,000 |
Based on statement of income of expenses and statement of situation of Malkom Ray Corporation
- Calculate the change in the net working capital of the company between the years 20x8 and 20x9. Explain what the change in working capital might be due to for that period.
- Calculate the following values for the company for the year ending in 20x9. Present evidence of all your calculations
- NOPAT - Net Operating Profit after Taxes
- OCF - Operating Cash Flow
- FCF - Free Cash Flow
- Discuss the meaning of each of the measures calculated in the previous question, both for management and for investors and creditors, among other constituents.
- What is the main cause of the differences that exist between the profits of the company and the cash flows of the same period evaluated?
Related Book For
Principles of Managerial Finance
ISBN: 978-0134476315
15th edition
Authors: Chad J. Zutter, Scott B. Smart
Posted Date: