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Finance HW1 - Finance Homework 1 Question 1 answer 1 2010...

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Finance Homework 1 Question 1 answer 1, 2010 operating cash flow revenue 127000 cost -64300 other expense -3900 interest expense -7100 taxes expense -15210 net operating cash flow 36490 Answer 2, interest expense 7100 long term debt 3800 cash flow to creditor 10900 Answer 3, dividends expense 8400 cash flow to stockholders 8400 Answer 4, There is no additon to the net working capital because fixed assets are not current assets. Question 2 balance sheet cash 27000 account payable 90000 account receivable 45000 long-term debt 60000 inventories 67500 Common Stock 52500 fixed assets 160500 Retained Earning 97500 Total assets 300000 Total liabilities and equity 300000 Sales 450000 Cost of good sold 337500 Total assets=Total liabilities and equity=300000 debt ratio=50%=total assets-total equity/total assets, total equity= 150000 so, AP=150000-60000=90000 sale/assets=1.5x, sale=450000, Gross profit margin=25% so CGS=337500 Inventory turnover=5x, so inventory=CGS/inventory ratio=337500/5=67500 365/receivable turnover=36.5, RT=10, RT=sales/AR, so AR=45000 common stock=total liabilities and equity-total liabilities-retained earning=300000-150000-97500=52 fixed assets=total assets-current assets=300000-27000-45000-67500=160500
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