financial statements20

financial statements20 - Answer: b Diff: E ii . What is...

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SEBRING CORPORATION: BALANCE SHEETS FOR YEAR ENDING DECEMBER 31 (MILLIONS OF DOLLARS) 2002 2001 Assets: Cash and marketable securities $ 36.0 $ 30.0 Accounts receivable 540.0 450.0 Inventories 540.0 600.0 Total current assets $1,116.0 $1,080.0 Net plant and equipment 900.0 750.0 Total assets $2,016.0 $1,830.0 Liabilities and equity: Accounts payable $ 324.0 $ 270.0 Notes payable 201.0 155.0 Accruals 216.0 180.0 Total current liabilities $ 741.0 $ 605.0 Long-term bonds 450.0 450.0 Total debt $1,191.0 $1,055.0 Common stock (50 million shares) 150.0 150.0 Retained earnings 675.0 625.0 Total common equity $ 825.0 $ 775.0 Total liabilities and equity $2,016.0 $1,830.0 NOPAT Answer: d Diff: E i . What is Sebring’s net operating profit after taxes (NOPAT) for 2002? a. $100,000,000 b. $150,000,000 c. $225,000,000 d. $270,000,000 e. $375,000,000 Net operating working capital
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Unformatted text preview: Answer: b Diff: E ii . What is Sebrings net operating working capital for 2002? a. $ 540,000,000 b. $ 576,000,000 c. $ 750,000,000 d. $ 985,000,000 e. $1,116,000,000 Operating capital Answer: e Diff: E iii . What is Sebrings amount of total investor-supplied operating capital for 2002? a. $ 576,000,000 b. $ 888,000,000 c. $ 900,000,000 d. $1,275,000,000 e. $1,476,000,000 i . NOPAT Answer: d Diff: E NOPAT 02 = EBIT(1 - T) = $450,000,000(0.6) = $270,000,000. ii . Net operating working capital Answer: b Diff: E 02 capital working operating Net = $1,116,000,000 - $540,000,000 = $576,000,000. iii . Operating capital Answer: e Diff: E 02 capital operating supplied-investor Total = $900,000,000 + $576,000,000 = $1,476,000,000....
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This note was uploaded on 07/19/2011 for the course ACCTG 105 taught by Professor Liam during the Spring '11 term at Babson College.

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financial statements20 - Answer: b Diff: E ii . What is...

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