1. The 2021 and 2020 balance sheets for Sunset Industries are provided below. The company's sales...

 

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1. The 2021 and 2020 balance sheets for Sunset Industries are provided below. The company's sales for 2021 were $1,320 million, and EBITDA was 15% of sales. Furthermore, depreciation amounted to 10% of net fixed assets, interest expense was $30 million, the corporate tax rate was 25%, and Sunset pays out 40% of its net income as dividends. Sunset had 25 million shares outstanding in 2021, the 12/31/21 stock price was $80 per share, and its after-tax cost of capital was 15%. Based upon this information, answer the following seven questions. Siesta Industries December 31 Balance Sheets (in thousands of dollars) Assets Cash and cash equivalents Excess cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity 2021 $55,908 $5,992 $112,044 $176,251 $350,195 $408,000 $758.195 $42,018 $24,187 $38,500 $104,705 125,000 $229,705 $336,000 $192,490 $528,490 $758,195 2020 $44,000 $6,793 $92.370 $157,488 $300,651 $324,000 $624,651 $30,420 $18,981 $40.000 $89,401 $110,000 $199,401 $290,000 $135,250 $425,250 $624,651 a. What was the company's 2021 net income? (2 points) b. How much cash was provided by operating activities in 2021? (2 points) c. What was the company's 2021 net operating working capital (NOWC)? (2 points) d. What was the company's 2021 free cash flow? (3 points) e. What was the company's 2021 EVA? (2 points) f. What was the company's 2021 days sales outstanding (DSO)? Use a 365-day year in your calculation. (2 points) 1. The 2021 and 2020 balance sheets for Sunset Industries are provided below. The company's sales for 2021 were $1,320 million, and EBITDA was 15% of sales. Furthermore, depreciation amounted to 10% of net fixed assets, interest expense was $30 million, the corporate tax rate was 25%, and Sunset pays out 40% of its net income as dividends. Sunset had 25 million shares outstanding in 2021, the 12/31/21 stock price was $80 per share, and its after-tax cost of capital was 15%. Based upon this information, answer the following seven questions. Siesta Industries December 31 Balance Sheets (in thousands of dollars) Assets Cash and cash equivalents Excess cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity 2021 $55,908 $5,992 $112,044 $176,251 $350,195 $408,000 $758.195 $42,018 $24,187 $38,500 $104,705 125,000 $229,705 $336,000 $192,490 $528,490 $758,195 2020 $44,000 $6,793 $92.370 $157,488 $300,651 $324,000 $624,651 $30,420 $18,981 $40.000 $89,401 $110,000 $199,401 $290,000 $135,250 $425,250 $624,651 a. What was the company's 2021 net income? (2 points) b. How much cash was provided by operating activities in 2021? (2 points) c. What was the company's 2021 net operating working capital (NOWC)? (2 points) d. What was the company's 2021 free cash flow? (3 points) e. What was the company's 2021 EVA? (2 points) f. What was the company's 2021 days sales outstanding (DSO)? Use a 365-day year in your calculation. (2 points)

Answer rating: 100% (QA)

a computation of companys 2021 Net income i O Net inlome over and wages Material is what the ... View the full answer