Question: Excel Problem Company ZYX has asked you to help complete some of their finance work for 2015. They tell you the interest for the year
Excel Problem Company ZYX has asked you to help complete some of their finance work for 2015. They tell you the interest for the year was $50,000, and the corporate tax rate was 38%.Company ZYX's 2015 Income Statement:
|
| 2015 | 2014 |
| Sales | $ 3,450,000 | $ 3,000,000 |
| COGS | 986,000 | 658,934 |
| Gross Profit | 2,464,000 | 2,341,066 |
| SG&A Expenses | 239,000 | 191,200 |
| Depreciation | 135,000 | 108,000 |
| EBIT | 2,090,000 | 2,041,866 |
| Interest Expense | 50,000 | 25,833 |
| EBT | 2,040,000 | 2,016,033 |
| Taxes | 775200 | 766,092 |
| Net Income | 1,264,800 | 1,249,940 |
1.Calculate the operating cash flow amount for 2015
2.What is the cash coverage for 2015?
3.If you were told that the amount of inventory on the 2015 balance sheet was $275,000, what is the inventory turnover?
4.Given your findings in part A, what is the days in inventory? (Round to nearest whole number)
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