Investment
-$3,454,000
Net working capital change
-$ 275,000
$ 275,000
Operating cash flow
$1,357,000
$1,357,000
$1,357,000...
Investment
-$3,454,000
Net working capital change
-$ 275,000
$ 275,000
Operating cash flow
$1,357,000
$1,357,000
$1,357,000
Salvage
$ 249,000
Should Brawn accept or reject this project at an adjusted WACC
of 7.497.49%, 9.499.49%, or 11.4911.49%?
Problem 2-11 Free Cash Flow (LG2-5)
You are considering an investment in Fields and Struthers, Inc....
Problem 2-11 Free Cash Flow (LG2-5)
You are considering an investment in Fields and Struthers, Inc.
and want to evaluate the firm’s free cash flow. From the income
statement, you see that Fields and Struthers earned an EBIT of $98
million, had a tax rate of 30 percent, and its depreciation expense
was $9 million. Fields and Struthers’ gross fixed assets increased
by $64 million from 2017 to 2018. The firm’s current assets
increased by $52 million and spontaneous current...
what is the terminal year cash flow (year 6)
change in net working capital from year...
what is the terminal year cash flow (year 6)
change in net working capital from year 0 is $3,779,000.00; salvage
value is $4,800,000.00;
Analyze the cash for Bed Bath & Beyond.
Period Ending:
Trend
2/25/2017
2/27/2016
2/28/2015
3/1/2014
Net...
Analyze the cash for Bed Bath & Beyond.
Period Ending:
Trend
2/25/2017
2/27/2016
2/28/2015
3/1/2014
Net Income
$685,108
$841,489
$957,474
$1,022,290
Cash
Flows-Operating Activities
Depreciation
$290,914
$273,947
$239,193
$220,116
Net Income
Adjustments
$94,274
$113,990
$27,439
$47,063
Changes
in Operating Activities
Accounts
Receivable
$0
$0
$0
$0
Changes in
Inventories
($38,493)
($121,748)
($161,506)
($117,926)
Other Operating
Activities
($33,970)
($31,132)
$12,656
($16,746)
Liabilities
$43,955
($64,362)
$103,233
$226,929
Net Cash
Flow-Operating
$1,041,788
$1,012,184
$1,178,489
$1,381,726
Cash
Flows-Investing Activities
Capital
Expenditures
($373,574)
($328,395)
($330,637)...
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Olson-Jones Industries Inc. for
December 31,...
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Olson-Jones Industries Inc. for
December 31, 20Y2 and 20Y1, is as follows:
Dec. 31, 20Y2
Dec. 31, 20Y1
Assets
Cash
$115
$37
Accounts receivable (net)
65
47
Inventories
41
26
Land
94
104
Equipment
53
41
Accumulated depreciation-equipment
(14)
(7)
Total Assets
$354
$248
Liabilities and Stockholders'
Equity
Accounts payable (merchandise creditors)
$45
$37
Dividends payable
7
-
Common stock, $1 par
23
12
Paid-in capital: Excess of issue price...
7. (CMA) Garfield Inc. is considering a 10-year capital
investment project with forecasted cash revenues of...
7. (CMA) Garfield Inc. is considering a 10-year capital
investment project with forecasted cash revenues of $40,000 per
year and forecasted cash operating costs of $29,000 per year. The
initial cost of the equipment for the project is $23,000, and
Garfield expects to sell the equipment for $9,000 at the end of the
tenth year. The equipment will be depreciated on a straight-line
basis over seven years for tax purposes. The project requires a
working capital investment of $7,000 at...