By using the financial information, answer the following questions Free Cash Flows (All dollar values are provided
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Free Cash Flows (All dollar values are provided in millions.) 2018 Sales, ST Invest, Notes Pay, LT Debt factor increase Operating costs as % of sales Cash factor increase Accts. Rec factor increase Inventory factor increase Net Plant & Equip factor increase Accts Pay factor increase Accruals factor increase Depreciation as % of Net Plant & Equip Interest rate Tax rate Payout rate 1.25 82.50% 1.20 1.15 1.15 1.25 1.15 1.20 10.00% 10.00% 40.00% 90.00% 2017 Sales Cash as % of sales Accts Rec as % of sales Inventory as % of sales Net Plant & Equip as % of sales Accts Pay as % of sales Accruals as % of Sales $7,500 1.00% 10.00% 16.00% 28.00% 8.00% 7.00% Operating cost as % of sales 85.00% Depreciation as % of Net Plant & Equip 10.00% Interest rate 10.00% Tax rate 40.00% Payout rate 80.00% Short-term investments as % of sales 0.50% Notes payable as % of sales 2.00% Long-term debt as % of sales 20.00% Retained earnings multiple factor 1.50 Free Cash Flows (All dollar values are provided in millions.) 2018 Sales, ST Invest, Notes Pay, LT Debt factor increase Operating costs as % of sales Cash factor increase Accts. Rec factor increase Inventory factor increase Net Plant & Equip factor increase Accts Pay factor increase Accruals factor increase Depreciation as % of Net Plant & Equip Interest rate Tax rate Payout rate 1.25 82.50% 1.20 1.15 1.15 1.25 1.15 1.20 10.00% 10.00% 40.00% 90.00% 2017 Sales Cash as % of sales Accts Rec as % of sales Inventory as % of sales Net Plant & Equip as % of sales Accts Pay as % of sales Accruals as % of Sales $7,500 1.00% 10.00% 16.00% 28.00% 8.00% 7.00% Operating cost as % of sales 85.00% Depreciation as % of Net Plant & Equip 10.00% Interest rate 10.00% Tax rate 40.00% Payout rate 80.00% Short-term investments as % of sales 0.50% Notes payable as % of sales 2.00% Long-term debt as % of sales 20.00% Retained earnings multiple factor 1.50
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Step 1 Working Capital It is the amount of capital which kept aside to meet out short term debts of the business Working capital is calculate by deduc... View the full answer
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
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