MicroDrive's Financial Statements are below (all numbers re in millions of dollars) Assets 2006 2007 Cash...

  

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MicroDrive's Financial Statements are below (all numbers re in millions of dollars) Assets 2006 2007 Cash and equivalents 15 10 Short-term investments 65 Accounts receivable 315 375 Inventories 415 615 Total current assets 810 1,000 Net plant and equipment 870 1,000 Total assets 1680 2,000 Accounts payable 30 60 Notes payable 60 110 Accruals 130 140 Total current liabilities 220 310 Long-term bonds 580 754 Total debt 800 1,064 Common stock (50,000,000 shares) 170 170 Retained earnings 710 766 Total common equity 880 936 Total liabilities and equity 1,680 2,000 INCOME STATEMENT 2007 Net sales $3,000.0 COGS Operating cost - Part I $2,319 Gross Profits $681.0 Operating Expenses Except Depreciation Operating cost - Part Il $297.2 Depreciation (there is no amortization) $100.0 Operating Profit $283.8 Earnings before Income and Taxes (EBIT) S283.8 Less interest $88.0 Earnings before taxes (EBT) or Pre-tax income $195.8 Тахes $78.3 Net Income availabie to common stockholders $117.5 Dividends $61.5 Addition to retained earnings $56.0 Using the data answer the following questions. Assume: i) all short-term operating and financing assets were converted to cash (and used) this year, i) al short-term operating liabilities (to suppliers and other non-investors) were fully paid this year, and i) All PPE that was sold, was sold at Net Book Value (no capital gains or losses), and iv) there are no deferred taxes a. Fil in the sources and uses of cash amount associated with each line item in the table below (if you need to make any additional assumptions, explicitly state them): | Amount Sources of Cash Cash Revenues Collecting Previous Year's Acct. Receivables Money withdrawn in bank Uses of Cash Amount COGS Paid in Cash Operating Expenses Paid in Cash Purchase of Inventory not account sold at Year-end Sale of Marketable Securities Тахes Paying Dividends Sale of PPE Net Interest Expense (on Debt Payments less interest income from marketable securities) Cash Received from Net Issuance of Debt (issuance less retirement) Cash Received from Net Issuance of New Stock Money deposited in bank (issuance iess repurchase) account Purchase of Marketable Securities Purchase of PPE Paying off Accounts Payables & Accruals b. Calculate the cash flow statement for 2007 for Microdrive. C. Calculate the free cash flows for 2007 for Microdrive. MicroDrive's Financial Statements are below (all numbers re in millions of dollars) Assets 2006 2007 Cash and equivalents 15 10 Short-term investments 65 Accounts receivable 315 375 Inventories 415 615 Total current assets 810 1,000 Net plant and equipment 870 1,000 Total assets 1680 2,000 Accounts payable 30 60 Notes payable 60 110 Accruals 130 140 Total current liabilities 220 310 Long-term bonds 580 754 Total debt 800 1,064 Common stock (50,000,000 shares) 170 170 Retained earnings 710 766 Total common equity 880 936 Total liabilities and equity 1,680 2,000 INCOME STATEMENT 2007 Net sales $3,000.0 COGS Operating cost - Part I $2,319 Gross Profits $681.0 Operating Expenses Except Depreciation Operating cost - Part Il $297.2 Depreciation (there is no amortization) $100.0 Operating Profit $283.8 Earnings before Income and Taxes (EBIT) S283.8 Less interest $88.0 Earnings before taxes (EBT) or Pre-tax income $195.8 Тахes $78.3 Net Income availabie to common stockholders $117.5 Dividends $61.5 Addition to retained earnings $56.0 Using the data answer the following questions. Assume: i) all short-term operating and financing assets were converted to cash (and used) this year, i) al short-term operating liabilities (to suppliers and other non-investors) were fully paid this year, and i) All PPE that was sold, was sold at Net Book Value (no capital gains or losses), and iv) there are no deferred taxes a. Fil in the sources and uses of cash amount associated with each line item in the table below (if you need to make any additional assumptions, explicitly state them): | Amount Sources of Cash Cash Revenues Collecting Previous Year's Acct. Receivables Money withdrawn in bank Uses of Cash Amount COGS Paid in Cash Operating Expenses Paid in Cash Purchase of Inventory not account sold at Year-end Sale of Marketable Securities Тахes Paying Dividends Sale of PPE Net Interest Expense (on Debt Payments less interest income from marketable securities) Cash Received from Net Issuance of Debt (issuance less retirement) Cash Received from Net Issuance of New Stock Money deposited in bank (issuance iess repurchase) account Purchase of Marketable Securities Purchase of PPE Paying off Accounts Payables & Accruals b. Calculate the cash flow statement for 2007 for Microdrive. C. Calculate the free cash flows for 2007 for Microdrive.

Answer rating: 100% (QA)

answers Souces of Cash Amount Uses of Cash Amount Cash Revenues 2625 COGS paid in cash 2259 Collecting previous years AR 315 Operating expenses paid in cash 15730 Money withdrawn in Bank account Purch... View the full answer