3-11 FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries' 2007 and 2008 bal- ance sheets (in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3-11 FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries' 2007 and 2008 bal- ance sheets (in thousands of dollars) are shown. Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity 2008 $102,850 2007 $ 89,725 103,365 85,527 38,444 34,982 $244,659 $210,234 67,165 $311,824 $ 30,761 30,477 16,717 $ 77,955 42,436 $252,670 $ 23,109 22,656 14,217 $ 59,982 76,264 $154,219 63,914 $123,896 100,000 90,000 57,605 38,774 $157,605 $128,774 $311,824 Total liabilities and equity $252,670 a. Sales for 2008 were $455,150,000, and EBITDA was 15% of sales. Furthermore, deprecia- tion and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income in dividends. Given this informa- tion, construct the firm's 2008 income statement. b. Construct the statement of stockholders' equity for the year ending December 31, 2008, and the 2008 statement of cash flows. Calculate 2007 and 2008 net working capital and 2008 free cash flow. d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders? 3-11 FINANCIAL STATEMENTS, CASH FLOW, AND TAXES Laiho Industries' 2007 and 2008 bal- ance sheets (in thousands of dollars) are shown. Cash Accounts receivable Inventories Total current assets Net fixed assets Total assets Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity 2008 $102,850 2007 $ 89,725 103,365 85,527 38,444 34,982 $244,659 $210,234 67,165 $311,824 $ 30,761 30,477 16,717 $ 77,955 42,436 $252,670 $ 23,109 22,656 14,217 $ 59,982 76,264 $154,219 63,914 $123,896 100,000 90,000 57,605 38,774 $157,605 $128,774 $311,824 Total liabilities and equity $252,670 a. Sales for 2008 were $455,150,000, and EBITDA was 15% of sales. Furthermore, deprecia- tion and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income in dividends. Given this informa- tion, construct the firm's 2008 income statement. b. Construct the statement of stockholders' equity for the year ending December 31, 2008, and the 2008 statement of cash flows. Calculate 2007 and 2008 net working capital and 2008 free cash flow. d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company's shareholders?
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Name the following compounds, and indicate whether each is a reducing sugar or a nonreducing sugar: a. b. c. d. CH,OH HO OCH2CH2CH3 OH HO CH2OH OCH3 - HOCH OCH2CH3 CH OH OH OH
-
Conduct research about a real organization and classify it as a third sector, private, or public sector organization. Develop a social entrepreneurship plan for the organization, based on the...
-
The Joit Company currently manufacturers an electrical component ror its product, a small kitchen appliance. The company's variable unit manufacturing costs of making the electrical component are:...
-
The comparative financial statements for CyberOptic Corporation are in the Working Papers. The financial statements have been completed up to the comparative analysis section. Instructions: 1....
-
The Customer Service Department of Grand Lakes Technologies asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and...
-
Paddleboard Inc. began operations on January 1 , 2 0 2 2 . Its post - closing trial balance at December 3 1 , 2 0 2 2 and 2 0 2 3 , is shown below along with some other information. [ [ [ [...
-
Each day Paul, who is in third grade, eats lunch at school. He likes only Twinkies (t) and soda (s), and these provide him a utility of a. If Twinkies cost $0.10 each and soda costs $0.25 per cup,...
-
Simplify the expression by combining like terms: 2x + 15x+13+10x+9x+6.
-
Describe the cycloaddition e.g. Determine if the addition would be suprafacial or antarafacial Draw an arrow pushing mechanism Draw the structure of the major product (include stereochemistry) type...
-
If the following quotes are on September 15, 2012, what was the coupon rate for the JD.VR bonds with $1,000 face values and semiannual payments? Company (Ticker) Coupon Maturity Last Price Last Yield...
-
Net Credit Sales 500,000 Cost of Goods Sold 300,000 Operating expenses 75,000 interest and other expenses 25,000 Inventory at beginning of year 38,356 Inventory at end of year 43,836 Stock price 5...
-
Paper Corporation acquired 75 percent of Script Company's common stock on May 15, 20X3, at underlying book value. Script's balance sheet on December 31, 20X6, contained these amounts Cash Accounts...
-
Kona applied for life insurance in May. The policy is approved and now ready for delivery in July. The agent must determine if there has been a change in insurability. Which of the following might be...
-
For the vector whose polar components are (Vr = 1, Vθ = 0), compute in polars all components of the second covariant derivative Vα;μ;ν. To find...
-
Chauncer Manufacturing Corporation produces a dandruff shampoo in three consecutive processes. The costs of Department 1 for June 2019 were as follows: Department 1 handled the following units during...
-
Sweet Fragrances Company uses process costing to account for the manufacture of its perfume. The factory consists of three departments: Blending, Bottling, and Packaging. The production manager of...
-
(a) Consider the directed network below, whose edge capacities are indicated. For each of the vertex sets \(\{1,2\},\{1,2,3\}\), and \(\{1,4\}\), list the edges in the cut corresponding to the set...
Study smarter with the SolutionInn App