10. Determine Free Cash Flows from the given income statements and balance sheets. Smith Brothers Corporation...
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10. Determine Free Cash Flows from the given income statements and balance sheets. Smith Brothers Corporation Income Statements for Year Ending December 31 (Millions of Dollars) Sales Operating costs excluding depreciation 306 EBITDA $ 54 Depreciation EBIT Interest EBT Taxes (40%) Net income 2017 2016 $360 $300 Assets Cash 9 $ 45 $ 38 $ 32 15 13 $23 $19 Smith Brothers Corporation Balance Sheets as of December 31 (Millions of Dollars) 255 $ 45 Accounts receivable Inventories Total current assets $112 Net plant & equipment 100 Total assets $212 7 $38 2017 2016 $4 $3 54 45 54 60 $108 75 $183 Liabilities and Equity Accounts payable Notes payable Accrued liabilities Total current liabilities Long-term bonds Total debt Common equity Total liabilities and equity $ 32 $28 20 16 22 18 $ 74 $ 62 45 $107 15 15 68 61 55 $129 Common stock (50,000,000 shares) Retained earnings $83 $76 $212 $183 10. Determine Free Cash Flows from the given income statements and balance sheets. Smith Brothers Corporation Income Statements for Year Ending December 31 (Millions of Dollars) Sales Operating costs excluding depreciation 306 EBITDA $ 54 Depreciation EBIT Interest EBT Taxes (40%) Net income 2017 2016 $360 $300 Assets Cash 9 $ 45 $ 38 $ 32 15 13 $23 $19 Smith Brothers Corporation Balance Sheets as of December 31 (Millions of Dollars) 255 $ 45 Accounts receivable Inventories Total current assets $112 Net plant & equipment 100 Total assets $212 7 $38 2017 2016 $4 $3 54 45 54 60 $108 75 $183 Liabilities and Equity Accounts payable Notes payable Accrued liabilities Total current liabilities Long-term bonds Total debt Common equity Total liabilities and equity $ 32 $28 20 16 22 18 $ 74 $ 62 45 $107 15 15 68 61 55 $129 Common stock (50,000,000 shares) Retained earnings $83 $76 $212 $183
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Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1337909747
7th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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