Case_Solutions - Corporate Finance Ross Westerfield and...

Info icon This preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
Corporate Finan Ross, Westerfield, and Ja 8th edition Case Solutions Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
nce affe k"
Image of page 2
Chapter 2 Cash Flows at Warf Computer, Inc. Input area: Balance Sheet (in $ th 2007 2006 Current assets Cash and equivalents $232 $201 Accounts receivable 367 342 Inventories 329 340 Other 47 40 Total current assets $975 $923 Fixed assets Property, plant, and equipment $2,105 $1,630 Less accumulated depreciation (687) (560) Net property, plant, and equipment $1,418 $1,070 Intangible assets and others 406 363 Total fixed assets $1,824 $1,433 Total assets $2,799 $2,356 Acquisition of fixed assets $629 Sale of fixed assets $111 New debt issued $94 Debt retired $54 New stock issued $47 Stock repurchased $32 Income Statement (in $ thousands) Sales $3,875 Cost of goods sold 2,286 Selling, general, and administrative 434 Depreciation 127 Operating income $1,028 Other income 38 EBIT $1,066 Interest expense (76) Pretax income $990 Taxes (347) Current $286 Deferred $61 Net income $643 Retained earnings $325
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Dividends $318 Output area: Operating cash flow Earnings before interest and taxes $1,066 Depreciation 127 -Current taxes 286 Operating cash flow $907 Cash flow from assets Acquisition of fixed assets $629 Sale of fixed assets $(111) Capital spending $518 Alternatively, Ending fixed assets $1,824 -Beginning fixed assets 1,433 Depreciation 127 Capital spending $518
Image of page 4
Net working capital cash flow Ending NWC $518 Beginning NWC 468 NWC cash flow $50 Cash flow to creditors Interest $76 Retirement of debt 54 Debt service $130 Proceeds from sale of long-term debt (94) Total $36 Alternatively Beginning long-term debt $589 Ending long-term debt (629) Interest 76 Total $36 Cash flow to stockholders Dividends $318 Repurchase of stock 32 Cash to stockholders $350 Proceeds from new stock issue (47) Total $303 Alternatively Beginning total equity $1,230 Ending total equity $(1,570) Dividends $318 Retained earnings $325 $303 Statement of cash flows Operations Net income $643 Depreciation 127 Deferred taxes 61 Changes in assets and liabilities Accounts receivable (25) Inventories 11 Accounts payable 66 Accrued expenses (79) Other (7) Total cash flow from operations $797 Investing activties
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Acquisition of fixed assets $(629) Sale of fixed assets 111 Total cash flow from investing activities $(518) Financing activties Retirement of debt $(54) Proceeds of long-term debt 94 Notes payable 15 Dividends (318) Repurchase of stock (32) Proceeds from new stock issues 47 Total cash flow from financing activities $(248) Change in cash (on balance sheet) $31
Image of page 6
housands) 2007 2006 Current liabilities Accounts payable $263 $197 Notes payable 68 53 Accrued expenses 126 205 Total current liabilities $457 $455 Long-term liabilities Deferred taxes $143 $82 Long-term debt 629 589 Total long-term liabilities $772 $671 Stockholders equity Preferred stock $10 $10 Common stock 72 64 Capital surplus 438 399 Accumulated retained earnings 1,147 822 Less treasury stock (97) (65) Total equity $1,570 $1,230 Total liabilities and shareholders equity $2,799 $2,356
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
Image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
Chapter 3
Image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern