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Last year, Blue Lake Mines, Inc., had earnings after tax of $650,000. Included in its expenses were depreciation of $400,000 and deferred taxes of...

1. Last year, Blue Lake Mines, Inc., had earnings after tax of $650,000. Included in its expenses were depreciation of $400,000 and deferred taxes of $100,000. The company also purchased new capital equipment for $300,000 last year. Calculate Blue Lake’s after-tax cash flow for last year.

1. Last year, Blue Lake Mines, Inc., had earnings after tax of $650,000. Included in its expenses were depreciation of $400,000 and deferred taxes of $100,000. The company also purchased new capital equipment for $300,000 last year. Calculate Blue Lake’s after-tax cash flow for last year.
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3. Consider the Industrial Supply Company example (Table 4.4) again. Assume that the company plans to maintain its dividend payments at the same level in 2011 as in 2010. Also assume that all of the additional financing needed is in the form of short-term notes payable. Determine the amount of additional financing needed and pro forma financial statements (that is, balance sheet, income statement, and selected financial ratios) for 2011 under each of the following conditions: Increase in SaleIncrease in Expenses a. $3,750,000 $3,750,000 b. $3,000,000 $2,800,000 c. $4,500,000 $4,000,000
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Finance-8225423.xls

Last year, Blue Lake Mines, Inc., had earnings after tax of $650,000. Included in its
expenses were depreciation of $400,000 and deferred taxes of $100,000. The company also
purchased new capital...

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