FREE Trial

1. Determine the Cash Flow Erom Assets (FCF), Cash Flow to Creditors, and Cash Flow to Shareholders for the...

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

Transcribed Image Text:

1. Determine the Cash Flow Erom Assets (FCF), Cash Flow to Creditors, and Cash Flow to Shareholders for the firm. 2. Assume you are sitting in a board meeting discussing the firm's plans for sales growth. You are telling the board that you expect to grow sales by 7.5 %. After explaining your plan, a board member asks you for an estimate of how much funding you will need in 2020. What is your answer if you use the formula for External Funds Needed? 3. Now assume the board member asks whether or not you can achieve the growth holding your capital structure constant. What is your answer? 4. What is your answer if the board member asks if you can achieve the growth without issuing ANY new external financing? 5. Calculate the following ratios for the firm for 2019. Quick Cash Coverage Days Sales Out Current Cash Debt Days Sales in Inv Profit Margin Equity Mult Inventory Turn Rec Turn Total Asset Turn ROA ROE 6. Also calculate ROE using the expanded DuPont formula. Balance Sheet Income Statement 2011 Liabela: 2019 266 $ Assets: 2018 2019 160 $ 2019 $1,509 Cash 154 Acc Poyable 100 Sales Accounts Receivoble Inventory 525 S 5 497 S $ 1,182 S 1059 455 Accruals 200 오 466 'S Cost of Goods Sold 150 900 450 Totol Current 250 Depreciation %24 90 Total Current Operating Income 519 Long-Term Debt 224 $ 350 Net Fixed Assets Total Liob 690 $ 600 Interest Expense 70 Totol Assets 232 2.459 Pretax Income 449 Common e Par 55 $ 585 $ 45 Capital Surplus 494 Taxes 212 Retained Earnings 1,552 $ (50) $ 1,370 Net income 237 Treasury Stock (50) Total Eg 2,142 $ 1,859 Dividends 55 Total Liab & Eg 2,832 $ 2,459 Addition to RES 182

Expert Answer:

Answer rating: 100% (QA)

Determine the Cash Flow From Assets FCF Cash Flow to Creditors and Cash Flow to Shareholders for the firm ParticularsAmount Sales 1 753 Operating Costs 900 Depreciation 90 Earnings Before Interest Tax View the full answer


answer-question
Related Book For  answer-question
Entrepreneurial Finance

Entrepreneurial Finance

ISBN: 978-0133140514

6th edition

Authors: Philip J. Adelman; Alan M. Marks

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: January 29, 2021 07:30:34
See More Questions

Students also viewed these accounting questions

Q:
Financing that individuals or institutions have provided to a corporation is: a. classified as a stockholders' equity when provided by creditors and liability when provided by owners b. always...
A:
Answer i The correct option is D ii Hence F......
Q:
X vs. Y does not inherently mean that X-Y is the incremental project for investment. It may have been. X-Y or Y-X. To know which one is correct, you have the required data. For all the other...
A:
1 Project X 17 Y 18 and M 17 should be selected since t......
Q:
The Hartley Hotel Corporation is planning a major expansion. Hartley is financed 100 percent with equity and intends to maintain this capital structure after the expansion. Hartleys beta is 0.9. The...
A:
k e 10 0 9 16 10 15 4......
Q:
In 2015, Sven is single and has $120,000 of regular taxable income. He itemizes his deductions as follows: real property tax of $2,000, state income tax of $4,000, mortgage interest expense of...
A:
Sven has AMTI is 130 500 Description Amount Explanation 1 Regular taxable income 120 000 2 Personal exemption 4 000 3 Real property taxes 2 000 Not deductible for AMT 4 State income taxes 4 000 Not de......
Q:
Multiple Choice Questions 1. Halifax Corporation has a December 31 fiscal year-end. As of December 31, Year 1, the company has a debt covenant violation that results in a 10-year note payable to Nova...
A:
1 b Prior to December 31 Year 1 that gives the company until Ja......
Q:
Use the first eight rules of inference to derive the conclusions of the following symbolized arguments:
A:
To derive the conclusion P R from the given premises using the first eight rules of inference we can......
Q:
John was recently convicted by a jury of committing fraud against his employer. After the trial, it was revealed that some key evidence against John used in trial was obtained through his employers...
A:
1 2 No John probably does not have grounds for an appeal......
Q:
On 31 December 2015, Atlas Ltd borrows $100 000 from Progress Bank. Annual repayments are required over 5 years at a fixed interest rate of 11.5% per annum. How much is each annual repayment? Show...
A:
Click to View...
Q:
For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2016, Jeff decided to move to rented quarters and to operate the business, which was...
A:
Click to View...
Q:
Information taken from a Sears, Roebuck and Company annual report follows. December 31 Long-Term Debt ($ in millions) Year 2 Year 1 7% debentures, $300 million face value, due Year 11, effective rate...
A:
Required solution Cash in......
Q:
What is Pope Francis' position on carbon trading?
A:
titled Laudato Si in 2015 which addressed environmental issues climate change and the moral r......
Q:
Trees in England were cut down in the early years of the Industrial Revolution to produce charcoal for making steel. Even today, centuries after the logging, many of these logged areas lack trees....
A:
Holling s cycle also known as the adaptive cycle or resilience cycle is a conceptual framework used in ecology and environmental science to understand......
Q:
How are some utilities relying on social pressure to encourage individuals to reduce their home energy use?
A:
Several utilities and energy providers are implementing strategies that leverage social pressure to encourage individuals to reduce their home energy use These approaches draw on principles of behavio......
Q:
Box 20.5 suggests the possibility of relying on vegetation to mitigate industrial air pollution. Suppose that a manufacturing site wishes to get credit for the air quality regulation ecosystem...
A:
It is not appropriate for the manufacturing process to claim credit for the pollutant uptake by the trees on its site without further considerations Here s why The effectiveness of vegetation such as......
Q:
Explain with examples why the release phase of Holling's adaptive cycle is often referred to as creative destruction. It is often claimed that the development of digital photography resulted in...
A:
Holling s adaptive cycle is a conceptual framework used to understand and describe the dynamics of ecological and socio economic systems It consists of four phases Rapid Growth or Exploitation In this......
Q:
Questions 1. Identify and describe the function of the following features: Revolved Base Revolved Boss Revolved Cut Revolved Cut Thin Dome 2. Describe a Symmetric relation. 3. When is the Trim Entity...
A:
1 a Revolved Base This feature is used to create a 3D object by revolving the sketch about the selected axis b Revolved Boss This feature is used to c......
Q:
Modify the CYK algorithm so that it applies to any CFG, not just those in CNF.
A:
There is no one size fits all answer to this question as the CYK algorithm may need to be modified......
Auditing A Practical Approach 1st Extended Canadian Edition - ISBN: 1118878418 - Free Book