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Free Cash Flow Ratio Problem Instructions: Calculate the Free Cash Flow Ratio for Lucas Company. Lucas Company had net sales for the year of
Free Cash Flow Ratio Problem Instructions: Calculate the Free Cash Flow Ratio for Lucas Company. Lucas Company had net sales for the year of $450,500, cost of goods sold of $145,500, net income of $65,400, net cash provided by operating activities of $115,000, net cash used by investing activities of $55,200, capital expenditures of $40,500, and cash dividends of $24,500 in dividends for the year. What is the free cash flow for the year? Free Cash Flow Ratio Corporate Life Cycle Problem: Instructions: 1: Enter the Net cash provided (used) for each business activity" from a public company's Statement of Cash Flows for 2020. Use the same company financial statements from your Ch7 case study assignment. 2: Identify the likely phase in the company's corporate life cycle. Company (2020 Annual Report) Net cash provided (Used) by Operating Activities Net cash provided (Used) by Investing Activities Type company's name Ch12 Case Study Assignment - Part 3 (Total 10pts) Net cash provided (Used) by Financing Activities Likely Phase in the Company's Corporate Life Cycle Type Likely Phase in the Company's Life Cycle TARGET CORPORATION Consolidated Statements of Operations (Income Statement) (millions, except per share data) Sales Other revenue S 2020 92,400 $ 2019 77,130 $ 2018 74,433 1,161 982 923 Total revenue 93,561 78,112 75,356 Cost of sales 66,177 54,864 53,299 Selling, general and administrative expenses 18,615 16,233 15,723 Depreciation and amortization (exclusive of depreciation included in cost of 2,230 2,357 2,224 sales) Operating income 6,539 4,658 4,110 Net interest expense 977 477 461 Net other (income) / expense 16 (9) (27) Earnings from continuing operations before income taxes 5,546 4,190 3,676 Provision for income taxes 1,178 921 746 Net earnings from continuing operations 4,368 3,269 2,930 Discontinued operations, net of tax 12 7 Net earnings (Net income) $ 4,368 $ 3,281 $ 2,937 Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations $ 8.72 $ 6.39 $ 5.54 0.02 0.01 $ 8.72 $ 6.42 $ 5.55 $ 8.64 $ 6.34 $ 5.50 0.02 0.01 Net earnings per share $ 8.64 $ 6.36 $ 5.51 Weighted average common shares outstanding Basic 500.6 510.9 528.6 Diluted 505.4 515.6 533.2 Antidilutive shares Note: Per share amounts may not foot due to rounding. - Consolidated Statements of Financial Position (Balance Sheet) (millions, except footnotes) Assets Cash and cash equivalents Inventory Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Operating lease assets Other noncurrent assets Total assets January 30, 2021 February 1, 2020 $ 8,511 $ 2,577 10,653 8,992 1,592 1,333 20,756 12,902 6,141 6,036 31,557 30,603 5,914 6,083 2,765 2,692 780 533 (20,278) (19,664) 26,879 26,283 2,227 2,236 1,386 1,358 $ 51,248 $ 42,779 Liabilities and shareholders' investment Accounts payable $ 12,859 $ 9,920 Accrued and other current liabilities 6,122 4,406 Current portion of long-term debt and other borrowings 1,144 161 Total current liabilities 20,125 14,487 Long-term debt and other borrowings 11,536 11,338 Noncurrent operating lease liabilities 2,218 2,275 Deferred income taxes 990 1,122 Other noncurrent liabilities Total noncurrent liabilities Shareholders' investment Common stock Additional paid-in capital Retained earnings 1,939 1,724 16,683 16,459 42 42 6,329 6,226 8,825 6,433 Accumulated other comprehensive loss (756) (868) Total shareholders' investment 14,440 11,833 Total liabilities and shareholders' investment $ 51,248 $ 42,779 Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 500,877,129 shares issued and outstanding as of January 30, 2021; 504,198,962 shares issued and outstanding as of February 1, 2020. Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Earnings from discontinued operations, net of tax Net earnings from continuing operations (Net Income) Adjustments to reconcile net earnings to cash provided by 2020 2019 2018 $ 4,368 $ 3,281 $ 2,937 12 7 4,368 3,269 2,930 operations: Depreciation and amortization Share-based compensation expense 2,485 2,604 2,474 200 147 132 Deferred income taxes (184) 178 322 Loss on debt extinguishment Changes in operating accounts: Accounts payable 512 10 Noncash losses / (gains) and other, net 86 29 95 Inventory Other assets Accrued and other liabilities (1,661) 505 (900) (137) 18 (299) 2,925 140 1,127 1,931 199 89 Cash provided by operating activities-continuing operations 10,525 7,099 5,970 Cash provided by operating activities-discontinued = 18 3 operations Cash provided by operations 10,525 7,117 5,973 Investing activities Expenditures for property and equipment (2,649) (3,027) (3,516) Proceeds from disposal of property and equipment 42 63 85 Other investments 16 20 15 Cash required for (used by) investing activities (2,591) (2,944) (3,416) Financing activities Additions to long-term debt 2,480 1,739 Reductions of long-term debt Dividends paid (2,415) (2,069) (281) (1,343) (1,330) (1,335) Repurchase of stock (745) (1,565) (2,124) Stock option exercises 23 73 96 Cash required for (used by) financing activities (2,000) (3.152) (3,644) Net increase / (decrease) in cash and cash equivalents 5,934 1,021 (1,087) Cash and cash equivalents at beginning of period 2,577 1,556 2.643 Cash and cash equivalents at end of period $ 8,511 $ 2,577 $ 1,556 Supplemental information Interest paid, net of capitalized interest $ Income taxes paid 939 $ 1,031 492 $ 69 476 696 373 Leased assets obtained in exchange for new finance lease liabilities 428 379 130 Leased assets obtained in exchange for new operating lease liabilities 262 464 246 O
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