Use the financial information below to construct a 2010 income statement and balance sheets for both 2009
Fantastic news! We've Found the answer you've been seeking!
Question:
Use the financial information below to construct a 2010 income statement and balance sheets for both 2009 and 2010. The firm’s average tax rate is 40% and its plowback ratio is 60%. Find the firms’ cash flows (OCF, NCS, change in NWC, FCF, CFC, CFS).
| 2009 | 2010 |
Sales ($ millions) | 1000 | 1112 |
Cost of Goods Sold ($ millions) | 500 | 556 |
Other Expenses ($ millions) | 100 | 111 |
Depreciation ($ millions) | 100 | 100 |
Interest Expense ($ millions) | 50 | 55 |
Total Current Assets ($ millions) | 600 | 700 |
Accumulated Depreciation | 200 | 300 |
Net Fixed Assets ($ millions) | 1800 | 2000 |
Total Current Liabilities ($ millions) | 450 | 550 |
Long-term Liabilities ($ millions) | 900 | 975 |
Accumulated Retained Earnings | 500 | This can be determined from the information given. |
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date: