Below is a 2-part question. Please create a word document and/or spreadsheet to answer the following prompts. Upload your response according to the directions. Thank you in advance for participating in Silberman College of Business’ assurance of learning assessment.
Part I: Reporting and Financial Statement Analysis
Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page.
Income Statement for years |
||
2010 |
2009 |
|
Sales |
$5,500 |
$5,000 |
Operating Costs excluding Depreciation and Amortization |
4,675 |
4,250 |
EBITDA |
825 |
750 |
Depreciation and Amortization |
190 |
180 |
EBIT |
$635 |
$570 |
Interest Expense |
62 |
50 |
EBT |
$573 |
$520 |
Taxes (40%) |
229 |
208 |
NI |
$344 |
$312 |
Balance Sheet for years ending December 31 |
||
2010 |
2009 |
|
Assets: |
||
Cash |
$275 |
$250 |
Short Term Investments |
55 |
50 |
Accounts Receivable |
1,375 |
1,250 |
Inventories |
825 |
750 |
Total Current Assets |
$2,530 |
$2,300 |
Net Plant and Equipment |
1,925 |
1,750 |
Total Assets |
$4,455 |
$4,050 |
Liabilities: |
||
Notes Payable |
$192 |
$100 |
Accounts Payable |
580 |
500 |
Miscellaneous Payables |
245 |
250 |
Total Current Liabilities |
$1,017 |
$850 |
Long-Term Debt |
550 |
500 |
Total Liabilities |
$1,567 |
$1,350 |
Common Stock |
2154 |
2,200 |
Retained Earnings |
734 |
500 |
Less Treasury Stock |
46 |
0 |
Total Shareholder Equity |
$2,888 |
$2,700 |
Liabilities and Shareholder Equity |
$4,455 |
$4,050 |
Cash Flow Statement for year ending December 31, 2010 |
|
Operating Activities |
|
Net Income |
$344 |
Depreciation and Amortization |
190 |
Increase in Accounts Receivables |
(125) |
Increase in Inventories |
(75) |
Increase in Accounts Payables |
80 |
Decrease in Miscellaneous Payables |
(5) |
Net Cash Provided by Operations |
409 |
Investing Activities |
|
Purchase of equipment |
(365) |
Increase in Short Term Investments |
(5) |
Net Cash Used for Investment Activities |
(370) |
Financing Activities |
|
Dividends paid |
(110) |
Increase in Notes Payable |
92 |
Increase in Long Term Debt |
50 |
Purchase stock for Treasury |
(46) |
Net Cash used for Financing Activities |
(14) |
Beginning Cash Balance January 1, 2010 |
250 |
Ending Cash Balance December 31, 2010 |
275 |
Net Cash Flow |
$25 |
1. Develop Free Cash Flow for 2010 from the income statement, balance sheet and cash flow statement above.
,??????-??.=,(??????????-??.+D&A) –(investment in fixed assets + change in net operating working capital)
I can only see the first question "Develop Free Cash Flow for 2010 from the income statement, balance sheet and cash flow statement above" and thus providing answer to this part only.
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