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

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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 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

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 1753 Operating Costs 900 Depreciation 90 Earnings Before Interest Taxe... View the full answer