Chapter $2$ Answers to Problems

$2\mathrm{.}1$ Rasputin Corp., p$.42,$Chapter Review and Self$-$test Problem" Given EBIT of $835,$ interest of $267,$ a tax rate of $21\%,$ and depreciation of $$1,018$ find and calculate the following $3$ numbers:

EBT$=568$

EAT$=449.$

OCF$=1,734$

Given the OCF$=1,734,$ capital spending $=1335,$ and the change in net working capital $=74,$ find the cash flow from assets.

Questions and Problems

PLEASE ANSWER QUESTIONS $7-20$

net capital spending $=$$$1\mathrm{.}127$ million

change in net working capital$=$ increase of $180.$

cash flow to creditors $=$$$35,500.$

$16$ a$.$ shareholders' equity $=$$$1,300.16$ b$.$ equals $-900.$

a$.$

$a.$ EBIT$=$$$10,000$

EBT$=(-$$$185,000.)$

There are no taxes to subtract with negative EBT. Therefore, EAT also equals negative $$185,000.$ If EBT was positive taxes would be subtracted from EBT to find EAT.

b$.$ OCF$=$$$395,000.$

$19.$ Given EBT of $4,684,$ interest of $565,$ depreciation of $3,817$ and tax rate of $24\%,$ find and calculate

EAT$=3,560$; and

OCF$=7,942.$

$20$ a$.2022$ owners' equity$=7458$; for $2021$ it was $7558$

b$.$ negative $$216.$ Working capital dropped by $$216.$