Use the financial information about Widget Co. below to help answer questions 1-5 In 2019,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the financial information about Widget Co. below to help answer questions 1-5 • In 2019, Widget Co. did not issue or repurchase and shares • In 2019, Widget Co. did not pay any dividends Effective Tax Rate Accounts Payable Accounts Recievable Cash Current Portion Long Term Debt Depreciation Expense Interest Expense (Income) Inventory Long Term Debt Market Capitalization Marketable Securities Net Plant Property & Equipment Other Short Term Assets Other Short Term Liabilities Sales $ $ $ $ $ $ all figures below in millions USD 480 120 120 100 80 80 480 620 2,100 olu $ 2018 25.0% $ $ $ $ 300 $ 80 $ 90 $ 90 $ 70 $ 60 $ 420 $ 560 $ 1,800 $ 40 $ 1,250 $ 120 $ 250 $ 2019 25.0% $ $ $ 3,000 $ 60 1,500 100 300 3,500 It is recommended you carefully reconstruct an income statement and balance sheet before attempting these problems. 3. In 2019, Free Cash Flow to Equity (FCFE) is closest to: a. $10 b. $20 c. $30 d. $60 e. $70 4. In 2019, Investment in Working Capital is closest to: a. $250 b. $280 c. $310 d. $340 e. $370 5. In 2019, EBITDA is closest to: a. $750 b. $810 c. $840 d. $870 e. $900 Use the financial information about Widget Co. below to help answer questions 1-5 • In 2019, Widget Co. did not issue or repurchase and shares • In 2019, Widget Co. did not pay any dividends Effective Tax Rate Accounts Payable Accounts Recievable Cash Current Portion Long Term Debt Depreciation Expense Interest Expense (Income) Inventory Long Term Debt Market Capitalization Marketable Securities Net Plant Property & Equipment Other Short Term Assets Other Short Term Liabilities Sales $ $ $ $ $ $ all figures below in millions USD 480 120 120 100 80 80 480 620 2,100 olu $ 2018 25.0% $ $ $ $ 300 $ 80 $ 90 $ 90 $ 70 $ 60 $ 420 $ 560 $ 1,800 $ 40 $ 1,250 $ 120 $ 250 $ 2019 25.0% $ $ $ 3,000 $ 60 1,500 100 300 3,500 It is recommended you carefully reconstruct an income statement and balance sheet before attempting these problems. 3. In 2019, Free Cash Flow to Equity (FCFE) is closest to: a. $10 b. $20 c. $30 d. $60 e. $70 4. In 2019, Investment in Working Capital is closest to: a. $250 b. $280 c. $310 d. $340 e. $370 5. In 2019, EBITDA is closest to: a. $750 b. $810 c. $840 d. $870 e. $900
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below 3 In 2019 Free Cash Flow to Equity FCFE is closest to d 60 The free cash flow to equity F... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these finance questions
-
Use the financial information for Wal-Mart Stores, Inc., given on page 379, to answer the following questions: 1. For the most recent year given, compute Wal-Marts average collection period. 2. For...
-
Use the financial information for Starlight from Problem 16.1. Assume now that equity accounts do not vary directly with sales but change when retained earning change or new equity is issued. The...
-
Use the financial information for Wal-Mart Stores, Inc., given on page 378, to answer the following questions: 1. For the most recent year given, compute Wal-Mart's average collection period. 2. For...
-
Do you think that differences in reward practices across countries reflect differences in national cultures or other influences?
-
Average bond enthalpies are generally defined for gas-phase molecules. Many substances are liquids in their standard state. By using appropriate thermo-chemical data from Appendix C, calculate...
-
You have been hired as an expert witness in a court case involving an automobile accident. The accident involved car A of mass 1500 kg which crashed into stationary car B of mass 1100 kg. The driver...
-
Rework the decision problem in Example 7, supposing that only 3 of the 20 hard drives required repairs within the first year. Data From Example 7 EXAMPLE 7 Comparing four detergents using an F test...
-
Mikes Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company takes a loan to meet this requirement, at a...
-
a) Find f'(x) if the function is f(x) = 2.x using the limit definition of the derivative. b) What is the value at x = 2? (a) (b) f'(x) = Click here to start next step ... f'(2)= Click here to start...
-
Crane Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow. Assets Current assets Crane Medical...
-
1 2 3 4 5 6 What happens when more and more firms enter an industry? a) An increase in price b) An increase in the accounting profits c) Decline in economic profits d) A decline in production
-
Richard needs to borrow $34,103 and has narrowed his search for a loan to two banks. The first bank offers 67-month simple interest loans at an annual rate of 4.9%. The second bank offers 62-month...
-
When bart bought his car, it averaged 28 miles per gallon of gas. Now, the car's average miles per gallon has decreased by 14%. What is the cars average miles per gallon now?
-
Robert is inspecting a shipment of 22 inch pipes. The lengths of the pipes may vary by 1%. What is the range of allowable lengths in the pipes?
-
The rate of change in the temperature of water is given by the differential dT equation =-k(T-S) where T is the temperature of the water at the dt time t (measured in hours), S the room temperature...
-
25. In three dimensions, the location of a point can be represented by the ordered triple (x, y, z). a) Find the coordinates of the midpoint of the line segment with endpoints A(2, 3, 1) and B(6, 7,...
-
The figure below depicts a planet with an atmosphere comprised of two layers of greenhouse gases. The orange arrow depicts the incoming solar radiation. The different red arrows depict the longwave...
-
1. What is the semi-annually compounded interest rate if $200 accumulates to $318.77 in eight years? Answer in percentage with two decimal places. 2. What is the quarterly compounded interest rate if...
-
Tom Obstinate is disgusted by all of the emphasis being put on international accounting issues. Tom plans to practice accounting in the United States, with U.S. companies, using U.S. GAAP....
-
Credit sales for the year were $100,000. Collections on account were $88,000. Make the necessary summary journal entries to record this information.
-
For more than three decades, accounting professionals, accounting educators, and accounting bodies have debated requiring more education for those entering the public accounting profession. In 1988,...
-
Let us consider a call option with maturity \(T=1\) year and strike price \(\$ 11\). The current price of the stock share is \(\$ 10\), and the riskfree interest rate is \(10 \%\). The two possible...
-
Let us consider the same setting as Example 13.4: \(S_{0}=K=50\), \(r=01, \quad=04\), and time-to-maturity is \(T=5/12\) (here we take \(t=0)\). The calculation is as follows: This exact result may...
-
Let us consider the PDE with terminal condition In order to apply the representation theorem, we observe that \(r=0\), \((x t)=\), and , so that the underlying stochastic process boils down to a...
Study smarter with the SolutionInn App