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financialmanagement1

# financialmanagement1 - Julie Reardon Problem Set#1 1 Cash...

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Julie Reardon Problem Set #1 1) Cash flow from assets: 3703 Operating Cash Flow = EBIT + Depreciation - Taxes 8436 - 3001 - 728 - 502 = 4205 (EBIT) + 502 = 4707 - 499 = 4208 Net Capital Spending = ending net fixed assets - beginning net fixed assets + depreciation 8517 - 8592 = -75 + 502 = 427 Net Working Capital= Ending net working capital - beginning net working capital A/R = 808 Cash = 1276 Inventory = 1100 sum = 3184 - 639 = 2545 859 + 1049 + 1123 = 3031 - 564 = 2467 2545 - 2467 = 78 4208 - 427 - 78 = 3703 (CFFA) Cash flow to stockholders: -74 Dividends paid - net new equity raised 803 - (6521-5644) = -74 Cash Flow From Assets = Cash Flow to creditors + cash flow to owners 3703 = __ + -74 3777 So therefore Cash flow to creditors is 3777 2) Total Assets = 16,200 = Net Working Capital = 3,900 (ending net working capital - beginning net working capital) Owners Equity = 8,500 Long Term Debt = 6,000 Value of Current Assets Current Assets - cash, a/r, inventory then add net fixed assets for total assets Assets = Liabilities + Owners Equity 16200 = __ + 6,000 + 8,500 Liabilities = 1,700 3,900 - 1,700 = 2,200 Therefore Current Assets =2,200 3) Ending net fixed assets = 67,100 Beginning net fixed assets = 43,800 Sold assets with a book value of 9,500 Depreciation expense = 7,000 How much did they spend to buy new fixed assets? 67,100 + 9500 - 43,800 + 7000 = 39,800 to buy new fixed assets.

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financialmanagement1 - Julie Reardon Problem Set#1 1 Cash...

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