Question: hello i need some help figuring out how to do this question. thanks 5. Analyzing accounting data for managerial decisions Accounting data are used to

5. Analyzing accounting data for managerial decisions Accounting data are used to analyze cash flows, and this analysis is critical for decision making. Consider the following case: J&H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages. . Last year, J&H Corp. reported a book value of $300 million in current assets, of which 35% is cash, 37% is short-term investments, and the rest is accounts receivable and inventory. The company reported $255.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period. The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $480 million in long-term assets last year. Income Statement For the Year Ended on December 31 (Millions of dollars) IKH Corp. Industry Average Net sales $3,700 $4,625 Operating costs, except depreciation and amortization 2,960 3,700 Depreciation and amortization 148 185 Total operating costs 3,108 3,885 Operating income (or EBIT) $592 $740 Less Interest 59 Earnings before taxes (EBT) $533 5629 Less: Taces (40%) 213 252 Net Income $320 $377 Income Statement For the Year Ended on December 31 (Millions of dollars) J&H Corp. Industry Average Net sales $3,700 $4,625 2,960 3,700 148 185 3,108 3,885 $592 $740 Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes (40%) Net Income 59 111 $533 $629 213 252 $320 $377 Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true? Check all that apply. BH Corp.'s NOPAT IS $355.2 million, which is lower than the industry average of $444.0 million. The firm uses $414.0 million of total net operating capital to run the business, The company is using -566.0 million in net operating working capital acquired by investor-supplied funds. The company has $189.0 million in operating assets and $255.0 million in operating liabilities. Based on the information on industry averages, 18H Corp. would generate higher profits than the other players in the industry if all players were of a similar size and had no debt or held no financial assets
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