Question 12 Below are financial statements for a firm that paid a net $16 million to shareholders
Question:
Question 12
Below are financial statements for a firm that paid a net $16 million to shareholders in 2010. Supply the missing numbers (indicated by the capital letters) in the financial statements. Make sure to show how you got to the numbers.
Balance sheet, end of 2010
Balance Sheet, End of 2010 (In Million Dollars) | ||||||
2010 | 2009 | 2010 | 2009 | |||
Operating Assets | A | 400 | Operating Liabilities | 200 | 150 | |
Financial Assets | 300 | B | Financial Obligations | F | E | |
Shareholders’ Equity | D | 180 | ||||
Total | 900 | C | Total | G | 830 | |
Income Statement, 2010 | ||||||
Operating income after tax | H | |||||
Net Financial expense, after tax | 4 | |||||
Comprehensive income | 36 |
B. Calculate free cash flow for 2010
C. Calculate the cash flow with respect to net financial obligations
D. Calculate return on common equity ROCE and return of net operating assets RNOA
for 2010 on beginning of year denominators.
E. Show that ROCE and RNOA reconcile according to the financing leverage equation.